Gas-solid heat transfer during dilute phase pneumatic conveying is numerically studied by formulating and solving a two-dimensional, two-fluid model. The model is arrived after neglecting minority terms in the governing equations. A new algorithm for solution of governing equations is proposed, that is non-iterative and computationally less intensive. The performance of simulation algorithm is verified in comparison with the literature data. Heat transfer simulations have been carried out for particles of different sizes at a constant solid to gas mass flow ratio. Various aspects of profiles of phase velocities and temperatures and the effect of particle size on these profiles have been discussed. (c) 2006 Elsevier Ltd. All rights reserved.