Drag reduction in single-phase and in two-phase slug flow is well known and fairly extensively documented. However, research on drag reduction in two-phase mist or annular-mist flow such as encountered in wet gas transmission lines was non-existent. The initial objective of this project was to determine the feasibility of drag reduction on two-phase mist flow. Subsequent objectives were to screen available hydrocarbon soluble drag reducers and to develop correlations for predicting drag reduction behavior when natural gas and a hydrocarbon liquid flow in pipes with a drag reducer.