In order to predict the water-vapor two-phase flow structure in a fuel bundle of an advanced light-water reactor, large-scale numerical simulations were carried out using a newly developed two-phase flow analysis method and a highly parallel-vector supercomputer. Conventional analysis methods such as subchannel codes need composition equations based on many experimental data. Therefore, it is difficult to obtain highly prediction accuracy on the thermal design of the advanced light-water reactor core if the experimental data are insufficient. Then, a new analysis method using the large-scale direct numerical simulation of water-vapor two-phase flow was proposed. The coalescence and fragmentation of small bubbles were investigated numerically and the bubbly flow dynamics in narrow fuel channels were clarified. Moreover, the liquid film flow inside a tight-lattice fuel bundle which is used to the advanced light-water reactor core was analyzed and the water and vapor distributions around fuel rods and a spacer were estimated quantitatively.