When condensation takes place inside a horizontal tube with high vapor velocity, condensate flows in an annular shape on the tube wall and vapor flows in the core.Many investigators have studied this subject both experimentally and analytically. Empirical correlations involving non-dimensional groups were not quite successful because the correlations did not include all the flow variables (Refs 1, 2, 3, 4, 5). Carpenter and Colburn (6) considered only the laminar sublayer of condensate flow and derived an equation with an empirical constant. This method was modified by later investigators.(7,8) For a small range of the Prandtl Number, this equation gives good agreement with empirical data. But the equation has no general applicability. Rohsenow, Webber and Ling(9) analyzed the liquid film on the vertical plate and the heat transfer coefficient was obtained by the heat and momentum transfer analogy. A similar approach appeared in later papers.(10,11) This method will be developed further for the annular flow regime in this paper.