EMULSIONS CONSIST OF DROPLETS OF ONE LIQUID DISPERSED IN ANOTHER IMMISCIBLE LIQUID, IS ONE OF THE APPLICATIONS OF TWO PHASE FLOW IN MICRO CHANNELS. IN THIS WAY, CO-FLOWING DROPLET FORMATION IS INVESTIGATED IN THIS RESEARCH. IN THIS PAPER, THE INDEX FUNCTION MODEL OF LATTICE BOLTZMANN METHOD IS USED TO SIMULATE DROPLET FORMATION PROCESS IN MICRO-CHANNEL EMULSIFICATION (MCE) AT LOW CAPILLARY NUMBER IN A COW-FLOWING MICRO-CHANNEL. ACCURACY OF CODE IS ASSESSED BY THREE WELL-KNOWN ANALYTICAL MODELS. FURTHERMORE, IN THIS SIMULATION, VELOCITY RATIOS AND STREAMLINES IN DIFFERENT TIMES ARE INVESTIGATED AND THE RESULTS ARE IN GOOD AGREEMENT WITH LAST RESEARCHES. THIS INDICATES THAT INDEX FUNCTION MODEL HAS A GOOD ACCURACY AND HIGH STABILITY TO SIMULATE THIS KIND OF FLOW. MOREOVER NEW IDEA IS INTRODUCED TO RAISE QUALITY OF FORMED DROPLETS. AS MATTER OF FACT, DROPLET FORMATION IS OPTIMIZED BY OBSTACLES IN PASSAGE OF TWO-PHASES. GENERALLY, INSTEAD OF SIMPLE CO-FLOWING MICRO-CHANNEL, NEW ONE BY DIFFERENT GEOMETRY AT ENTRANCE OF PHASES IS STUDIED. IN OTHER WORDS, BY PRESENT OF OBSTACLES, INTERACTION OF TWO PHASES IS INTENSIFIED AND SHEAR FORCE IS MORE EFFICIENT ON DISPERSED PHASE. AS A RESULT, FORMATION QUALITY AND FREQUENCY CHANGE POSITIVELY. AFTER SIMULATION OF THIS PRESENTED MODEL, RESULTS ARE COMPARED WITH PREVIOUS SIMPLE MICRO-CHANNEL FOR SAME ENTRANCE PARAMETERS (VELOCITY RATIO, CAPILLARY NUMBER AND ENTRANCE GEOMETRY) AND THIS COMPARISON INDICATES EFFECTIVE ROLE OF OBSTACLE ON FORMATION OF DROPLETS WITH HIGHER QUALITY. BY INVESTIGATION ON OBSTACLE, THROUGH DIMENSIONLESS NUMBERS, DECISIVE PARAMETER FOR OPTIMIZED FORMATION IS DETERMINED. GEOMETRY OF OBSTACLE PARTICULARLY IS STUDIED AND BEHAVIOR OF DROPLET FORMATION IS REPORTED. ACCORDING TO THE RESULTS, DROPLET QUALITY IS DRAMATICALLY UNDER EFFECT OF SMALL GEOMETRY VARIATION. THIS SURVEY CAN BE GOOD SOURCE FOR DESIGN OF NEW MICRO-CHANNELS ESPECIALLY FOR EMULSION APPLICATION.