Liquid-liquid axial hydrocyclones (LLAHC) are broadly employed in various industries to remove oil from water due to their low maintenance costs, simple structure, and high efficiency. This paper proposes a novel LLAHC with guide vanes and examines its performance numerically using the mixture two-phase scheme and Reynolds stress model (RSM). The results demonstrate that the new design significantly improves efficiency and reduces pressure drop. Examining the effect of various parameters reveals that some parameters, such as inlet velocity and guide vane cross-sectional profile, have a great effect, and some, including vortex finder length, have a low influence on LLAHC performance. The findings reveal that when the guide vanes with airfoil # 1 are used, the suggested LLAHC performs best at an inlet velocity of 2.8 m/s, an oil exit diameter of 25 mm, and a vortex finder length of 10 mm.