The analysis of transients in nuclear power plants is a complex problem normally requiring use of simulation tools. One of these tools, known as parity simulation, exploits the concept of electrical analogs of a physical system. Electrical analogs of the components of a nuclear plant are constructed and interconnected in a highly user-oriented facility known as a parity simulator. Parity simulation originated in the study of electronic network transients and spread to neutronic and single-phase flow applications. This work focuses on the application of parity simulation to transient thermal-hydraulic two-phase flow. The development of a two-phase flow element is described. The governing mass, momentum, and energy equations along with other conditions are applied to a pipe section. The resulting model is then used to construct a circuit analog. The proposed circuit analog requires nonstandard components, the design and implementation of which is discussed. Subsequently, a formulation for a steam generator is given. Results obtained for different cases are presented. Comparison with reference numerical solutions shows general agreement in both cases.