The unsteady viscous incompressible and electrically conducting of two-phase fluid flow in circular pipes with external magnetic and electrical field is considered in this present study. Effects of both uniform transverse external magnetic and electrical fields applied perpendicular to the fluid and each other on the two-phase (solid/liquid) unsteady flow is investigated numerically. While iron powders are being used as the first phase of two-phase fluid, pure water was used as the second phase. The system of the derived governing equations, which are based on the Navier-Stokes equations including Maxwell equations, are solved numerically by using Pdex4 function on the Matlab for both phases. The originality of this study is that, in addition to magnetic field, the effect of electrical field on two-phase unsteady fluids is being examined. The magnetic field which is applied on flow decreases the velocity of both phases, whereas the electrical field applied along with magnetic field acted to increase and decrease the velocity values depending on the direction of electrical field. Electrical field alone did not display any impact on two-phase flow. On the other hand, analytical and numerical results are compared and favorable agreements have been obtained. Crown Copyright (C) 2011 Published by Elsevier Masson SAS. All rights reserved.