The recent development of microfluidic devices allows the investigation and manipulation of individual liquid microdroplets, capsules, and cells. The collective behavior of several red blood cells (RBCs) or microcapsules in narrow capillaries determines their flow-induced morphology, arrangement, and effective viscosity. Of fundamental interest here is the relation between the flow behavior and the elasticity and deformability of these objects, their long-range hydrodynamic interactions in microchannels, and thermal membrane undulations. We study these mechanisms in an in silico model, which combines a particle-based mesoscale simulation technique for the fluid hydrodynamics with a triangulatedmembrane model. mesoscale hydrodynamics simulations ͉ microfluidics ͉ microcirculation ͉ membrane elasticity ͉ erythrocyte shapes I n thermal equilibrium, lipid vesicles and red blood cells (RBCs) show a rich variety of shapes, depending on the environmental conditions. These shapes can be understood quantitatively on the basis of a mechanical and thermodynamical model of 2D elastic membranes (1-5). The membrane of RBCs consists of a lipid bilayer (in the fluid state) to which a spectrin network is attached. This network is responsible for the shear elasticity of the composite membrane. Under physiological conditions, RBCs adopt a biconcave-disk shape with constant area S and volume V, a mean radius R 0 ϭ ͌ S/4 ϭ 3.4 m, and a reduced volume V/(4R 0 3 /3) Ӎ 0.6. The spectrin network enables RBCs to remain intact while deforming in blood flow through narrow capillaries. Physiologically, the main effect of RBC deformation is a reduction of the flow resistance. Recently, it has been found that RBC deformation also induces ATP release from RBCs, which induces nitric oxide synthesis and enhances the vascular caliber (6, 7). Thus, the shape deformation of RBCs in microvessels plays a key role in the regulation of oxygen delivery. The deformability of RBCs can be reduced, for example, in diseases such as diabetes mellitus (8) and sickle cell anemia (9).The flow behavior of related systems containing deformable particles with elastic membranes is also interesting, such as suspensions of elastic microcapsules, which have been suggested as potential drug carriers (10, 11). Therefore, it is very important to understand the general problem of ''elastic vesicles'' in microcapillary flow. Such a system is characterized by the bending and shear elasticity of the membrane, the reduced volume of the vesicle, the volume fraction of vesicles in the solution, the capillary radius, and the flow velocity.Under flow, individual lipid vesicles and RBCs show a complex behavior already at high dilution. For example, in simple shear flow, various dynamic states have been found for lipid vesicles, such as steady tank-treading, unsteady tumbling, oscillatory motion (12-16), and flow-induced shape transitions (17)(18)(19). In narrow capillaries, individual RBCs adopt a parachute shape at higher flow velocities (8,(20)(21)(22)(23)(24)(25)(26).However, mu...