The two fluid model is used to simulate upward gas-liquid bubbly flow through a vertical conduit. Coalescence and breakup of bubbles have been accounted for by embedding the population balance technique in the two fluid model. The simulation enables one to track the axial development of the voidage pattern and the distribution of the bubbles. Thereby it has been possible to propose a new criterion for the transition from bubbly to slug flow regime. The transition criteria depend on (i) the breakage and coalescence frequency, (ii) the bubble volume count below and above the bubble size introduced at the inlet, and (iii) the bubble count histogram. The prediction based on the present criteria exhibits excellent agreement with the experimental data. It has also been possible to simulate the transition front bubbly to dispersed bubbly flow at a high liquid flow rate using the same model. [DOI: 10.1115/1.3203205]