This paper presents a numerical study using two-fluid model in order to compare the effect of hydrodynamic and hydrostatic models for pressure correction term in two-fluid model in modeling gas-liquid two-phase flows to provide a more accurate model. Two-fluid model is solved by Godunov Approximate Riemann Solver. The two-fluid model is applied using both hydrodynamic pressure correction term and hydrostatic pressure correction term for four sample examples including Water Faucet Case, Water-Air Separation Case, Toumi’s Shock Tube Case, and Large Relative Velocity Shock Tube Case. Hydrostatic pressure correction term is neglected for vertical geometry, therefore, in this geometry; two-fluid model cannot be hyperbolic. Thus, hydrostatic pressure correction term is not a stabilizing term. Also, in horizontal pipe and for atmospheric conditions, hydrostatic pressure correction term presents better results than hydrodynamic pressure correction term. But, in non-atmospheric conditions, hydrodynamic pressure correction term presents better results. Therefore, in order to select a suitable pressure correction term for two-fluid model, we consider geometry (vertical or horizontal) and flow conditions (atmospheric or under-pressure). Also, hydrodynamic pressure correction term in two-fluid equations system is hyperbolic in a boarder range than hydrostatic pressure correction term.