In this article, principle and mathematical method of determining the phase fractions of multiphase flows by using a dual-energy γ-ray system have been described. The dual-energy γ-ray device is composed of radioactive isotopes of 241Am and 137Cs with γ-ray energies of 59.5 and 662 keV, respectively. A rational method to calibrate the absorption coefficient was introduced in detail. The modified arithmetic is beneficial to removing the extra Compton scattering from the measured value. The result shows that the dual-energy γ-ray technique can be used in three-phase flow with average accuracy greater than 95%, which enables us to determine phase fractions almost independent of the flow regime. Improvement has been achieved on measurement accuracy of phase fractions.