In this study, bubble dynamics and frictional pressure drop associated with gas liquid two-phase slug flow regime in adiabatic T-junction square microchannel has been investigated using CFD. A comprehensive study on the mechanism of bubble formation via squeezing and shearing regime is performed. The randomness and recirculation profiles observed in the squeezing regime are significantly higher as compared to the shearing regime during formation of the slug. Further, effects of increasing gas velocity on bubble length are obtained at fixed liquid velocities and simulated data displayed good agreement with available correlations in literature. The frictional pressure drop for slug flow regime from simulations are also obtained and evaluated against existing separated flow models. A regression correlation has also been developed by modifying C-parameter using separated flow model, which improves the prediction of two-phase frictional pressure drop data within slug flow region, with mean absolute error of 10 %. The influences of fluid properties such as liquid viscosity and surface tension on the two-phase frictional pressure drop are also investigated and compared with developed correlation. The higher liquid viscosity and lower surface tension value resulted in bubble formation via shearing regime.