In this study, numerical simulation of formation of droplet within T-shaped microchannel is investigated. Three-dimensional, transient and two-phase numerical solution for four different microchannels with different stepping positions in the flow path was performed. Various parameters such as volume fraction, Nusselt number, pressure, Reynolds number, and temperature are discussed. The results show that the location of stepped barriers in the flow path affects the process of droplet formation, its number and size in the microchannel and should be considered as an important factor in determining the fluid behavior in the microchannel. It was observed that by placing half of the step at the entrance and the other half after the entrance, the continuous phase (S3 mode) was formed in 37.5 s compared to the other modes. The droplets were also smaller in size and more in numbers. It was also observed that the maximum value for the Nusselt number was obtained for the S2 mode where the step was located just above the discrete-phase entrance. In addition, the pressure at the inlet was higher and the flow velocity increased after the step and its pressure decreased, and continued to decrease due to frictional path.