The effect of tube diameter on two-phase frictional pressure drop was investigated in circular tubes with inner diameters of 0.6, 1.2, 1.7, 2.6 and 3.4. mm using air and water. The gas and liquid superficial velocity ranges were 0.01-50. m/s and 0.01-3. m/s, respectively. The gas and liquid flow rates were measured and the two-phase flow pattern images were recorded using high-speed CMOS camera. Unique flow patterns were observed for smaller tube diameters. Pressure drop was measured and compared with various existing models such as homogeneous model and Lockhart-Martinelli model. It appears that the dominant effect of surface tension shrinking the flow stratification in the annular regime is important. It was found that existing models are inadequate in predicting the pressure drop for all the flow regimes visualized. Based on the analysis of present experimental frictional pressure drop data a correlation is proposed for predicting Chisholm parameter " C" in slug annular flow pattern. For all other flow regimes Chisholm's original correlation appears to be adequate except the bubbly flow regime where homogeneous model works well. The modification results in overall mean deviation of pressure drop within 25% for all tube diameters considered. This approach of flow regime based modification of liquid gas interaction parameter appears to be the key to pressure drop prediction in narrow tubes. © 2010 Elsevier Inc.