The characteristics of two-phase gas-liquid flow and heat transfer during flow boiling and condensing in micro-scale heat exchangers are discussed in this paper. The results of numerical simulation of the evaporating liquid film flowing downward in rectangular minichannel of the two-phase compact heat exchanger are presented and the peculiarities of microscale heat transport in annular flow with phase changes are discussed. Presented model accounts the capillarity induced transverse flow of liquid and predicts the microscale heat transport processes when the nucleate boiling becomes suppressed. The simultaneous influence of the forced convection, nucleate boiling and liquid film evaporation during flow boiling in plate-fin heat exchangers is considered. The equation for prediction of the flow boiling heat transfer at low flux conditions is presented and verified using experimental data.