The counterflow diffusion flames of methanol hydrothermal combustion are investigated to improve the understanding of hydrothermal flames. It is indicated that the thermodynamic properties by Peng-Robinson equation of state and the polynomial fitted viscosity and thermal conductivity can reduce the flame temperature by about 500K. The Takahashi correlation for mass diffusivity is found to be appropriate through comparison with the experimental data of Wellig et al. (J. Supercrit. Fluids, 2009, 49, 1). By comparing with the Kolmogorov length scale in the practical combustor, the thickness of the calculated counterflow flame is ten times larger, which means that the flame is affected by the turbulence intensively. The flame stable range is also reproduced well by the developed hydrothermal counterflow flame model. In the end, an Flamelet Generated Manifold (FGM) table is generated, promising to provide good closure of the non-equilibrium chemical source term in further turbulent flame simulations.