AbstractIn this investigation, the Warren and Root model proposed for the simulation of naturally fractured reservoir was improved. A reservoir simulation approach was used to develop a 2D model of a synthetic oil reservoir. Main rock properties of each gridblock were defined for two different types of gridblocks called matrix and fracture gridblocks. These two gridblocks were different in porosity and permeability values which were higher for fracture gridblocks compared to the matrix gridblocks. This model was solved using the implicit finite difference method. Results showed an improvement in the Warren and Root model especially in region 2 of the semilog plot of pressure drop versus time, which indicated a linear transition zone with no inflection point as predicted by other investigators. Effects of fracture spacing, fracture permeability, fracture porosity, matrix permeability and matrix porosity on the behavior of a typical naturally fractured reservoir were also presented.