The transient behavior of two-phase flow and heat transfer in a channel filled with porous media was numerically studied in this paper. Based on the two-phase mixture model, numerical solutions were obtained using the Finite-Volume Method (FVM). Two methods to treat the discontinuous diffusion coefficient in the energy equation, i.e. the harmonic mean method and the “modified” Kirchhoff method were compared. It was found that the “modified” Kirchhoff method was better in dealing with the rapid change in the diffusion coefficient. Three different cases, with discrete heat flux applied at (1) the upper wall, (2) lower wall and (3) both the upper and lower walls were studied. The velocity and temperature fields for these cases were discussed. The results show that the liquid and vapor flow fields, as well as the temperature and liquid saturation fields have distinctly different features with the change in heating location. An analysis of the vapor volume fraction indicates that the largest amount of vapor with the highest vapor generation rate was for the case in which the heat flux is applied from the lower wall.