Existing controversy on the effect of blood flow, and more specifically red blood cell (RBC) movement, on the alveolar gas diffusion is considered. Contrary to fundamental understanding of flow (convection) effects, there seems to be a consensus in the negligible role blood flow plays on alveolar gas transport. Notwithstanding, experimental evidence indicates an increase in the efficiency of alveolar gas exchange under high cardiac output (exercising), which could be easily explained as a result of increased blood flow. A theoretical analysis of a simplified capillary blood flow configuration, with blood considered as a homogeneous fluid (no RBCs), is presented to demonstrate the strong blood (plasma) flow effect. The analysis is followed by the realistic modeling and numerical simulations of alveolar gas diffusion in a straight capillary under blood flow, with RBCs represented as discrete circles. Results indicate a substantial increase in the gas diffusion efficiency with blood speed, especially under low hematocrit and high blood speed.