The presence of residual oil or gas during fines migration in porous media greatly affects particle mobilization and capture. This paper investigates the effects of kaolinite content on fines migration and formation damage in the presence of oil residual. We carried out corefloods on engineered sand-packs that contained different percentages of kaolinite. Each core sample was subjected to brine injections varying from seawater salinity to freshwater. Measurements of the pressure drop and effluent particle size distributions were performed for each injection. It was determined that the main cause of permeability decline was pore throat straining by kaolinite. A higher decline of permeability accompanied by intensive fines production was encountered during freshwater injection. If compared with fines migration under single-phase flow, having a residual phase showed a significant decrease in formation damage and the amount of produced kaolinite. The laboratory data were matched with the analytical model for one-dimensional linear flow. A close agreement between the coreflood data and the model was obtained. The model coefficients were used for well injectivity decline prediction using a numerical one-dimensional radial injection model. The kaolinite content and the residual oil phase greatly impacted the well injectivity decline.