The dynamic behavior of two cells in a microchannel subject to a nonuniform electric field is simulated numerically by a two-fluid model in the present work. Owing to the presence of nonuniform electric field, usually the cells are polarized and then the dielectrophoresis occurs. The dielectrophoretic force induces the movement and deformation of cells in the microchannel. Meanwhile, the cell membrane develops a mechanical force to resist the cell deformation. In addition, the intercellular interaction becomes dominant when the cellcell distance is short enough such that an intercellular force is generated. The three forces are taken into account in the two-fluid model to characterize the dynamic behavior of cells. In order to validate the present model, the cell deformation is calculated and compared with the experimental results published previously, where a quantitative agreement is achieved. It is demonstrated by simulations that the cell conductivity mainly determines the motion and deformation of cells at low frequency. Instead of the cell conductivity however, the cell permittivity plays a critical and leading role at high frequency. These phenomena are consistent with the experimental observations. Furthermore, the intercellular interaction may cause the change in the dynamic behavior of cells.