Wavy Taylor vortex flow between two concentric cylinders is simulated on molecular level by the direct simulation Monte Carlo method. The number of cells in circumferential direction is greatly reduced by introducing the idea oflocally axisymmetrical collision. As found in experiment, the wavy Taylor vortices are seen to move in azimuthal direction. The frequency of the azimuthal waves is in agreement with the experimental observation. It is the first time that wavy Taylor vortex flow is simulated by means of a molecular approach. ©1997 American Institute of Physics.