A transient one-dimensional two-fluid model is proposed to investigate numerically the interfacial instability and the onset of slugging for liquid-gas flow in a horizontal duct. In the present model, the effects of surface tension and transverse variations in dynamic pressure are taken into account. The evolution of interfacial disturbances is displayed and compared with the linear viscous KelvinHelmholtz stability analyses. It shows that interfacial wave is more instable due to the non-linear effect. The model predicts well the stability limit of stratified flow in comparison with the experimental data, and also automatically tracks the onset of slugging. The results show that the initiation of hydrodynamic slugging is related to local interfacial instability. Based on the cycle of slugging, a model for slug frequency is presented, which predicts the trends of slug frequencies with gas/liquid flow rate well in comparison with the available data. The effects of physical properties on slugging have been examined. It is found that with the increase in the gas viscosity and liquid density the slugging would be inhibited, whereas, with the increase in liquid viscosity and gas density, the slugging can be promoted.