A subchannel analysis program, MENUETT, is developed for evaluation of thermal-hydraulic characteristics in boiling water reactor fuel bundles. This program is based on five conservation equations of two-phase flow with the drift-flux correlation. The cross flows are calculated separately for liquid and vapor phases from the lateral momentum conservation equation. The effects of turbulent mixing and void drift are accounted for in the program. The conservation equations are implicitly differentiated with the convective terms by the donor-cell method, and are solved iteratively in the axial and lateral directions. Data of the 3 × 3 rod bundle experiments are used for program verification. The lateral distributions of equilibrium quality and mass flow rate at the bundle exit calculated by the program compare satisfactorily with the experimental results.