The method of large-scale averaging is applied to derive and analyze a dual-porosity model of multiphase flow in naturally fractured reservoirs. The dual-porosity model contains the usual equations based on Darcy＇s law, and the coupling terms representing the fluid transfer between the matrix and the fractures. Both quasisteady and transient closure schemes are considered to obtain and analyze the fracture and matrix permeability tensors and the fluid transfer terms. The techniques developed here are not restricted to regular geometric fractures. Computational work aimed at showing the implications of the theory behind the derivation of the present dual-porosity model is also described. In particular, comparisons among the dual-porosity model, the single porosity model, and other dual-porosity models are presented through numerical experiments.