The paper presents simulation of two-phase flow in discrete fracture networks with numerical manifold method (NMM). Each phase of fluids is considered to be confined within the assumed discrete interfaces in the present method. The homogeneous model is modified to approach the mixed fluids. A new mathematical cover formation for fracture intersection is proposed to satisfy the mass conservation. NMM simulations of two-phase flow in a single fracture, intersection, and fracture network are illustrated graphically and validated by the analytical method or the finite element method. Results show that the motion status of discrete interface significantly depends on the ratio of mobility of two fluids rather than the value of the mobility. The variation of fluid velocity in each fracture segment and the driven fluid content are also influenced by the ratio of mobility. The advantages of NMM in the simulation of two-phase flow in a fracture network are demonstrated in the present study, which can be further developed for practical engineering applications.