Wave propagation in a homogeneous, low void fraction, two-phase air-water bubbly flow is analyzed through the compressibility of a single bubble to derive a P( -p) relation; the dispersion relation is then derived by a homogeneous model. The phase velocity and attenuation calculated from the model are compared with existing data and are in good agreement. The momentum transfer effect is considered through the virtual mass term and is significant at a higher void fraction. The interfacial heat transfer between phases is significant at low frequency, while bubble scattering effects are important at high frequency (near resonance). Bubble behavior at both low and high frequency is derived based on the isothermal and the adiabatic cases, respectively. The phase velocity occurs at the limiting condition in both cases. Furthermore, resonance is present in the model, and the resonant frequency is determined.