An analytical model of a two‐phase liquid‐metal magnetohydrodynamic generator is developed. The model is based on the averaging equations governing the two‐phase flow in the channel of a liquid‐metal magnetohydrodynamic generator. The inhomogeneity of the distribution of the gas phase over the channel cross section is taken into account by introducing the correlation coefficients &bgr;1, &bgr;2, and &bgr;3: ⟨&agr;u⟩ = &bgr;1⟨&agr;⟩⟨u⟩, ⟨&sgr;u⟩ = &bgr;2⟨&sgr;⟩⟨u⟩, ⟨&rgr;u⟩ = &bgr;3⟨&rgr;⟩⟨u⟩. Expressions for these coefficients in terms of the correlation coefficient &bgr;1are obtained. The calculated characteristics of the generator were compared with experimental data obtained at the Argonne National Laboratory. The comparison shows that the calculated and measured characteristics are in fairly good (±15%) agreement.