An experimental study was conducted in order to investigate two-phase flow regimes and fully developed pressure drop in a mini-size, horizontal rectangular channel. The test section was machined in the form of an impacting tee junction in an acrylic block (in order to facilitate visualization) with a rectangular cross-section of 1.87-mm height on 20-mm width on the inlet and outlet sides. Pressure drop measurement and flow regime identification were performed on all three sides of the junction. Air-water mixtures at 200 kPa (abs) and room temperature were used as the test fluids. Four flow regimes were identified visually: bubbly, plug, churn, and annular over the ranges of gas and liquid superficial velocities of 0.04 ≤ JG ≤ 10 m/s and 0.02 ≤ JL ≤ 0.7 m/s, respectively, and a flow regime map was developed. Accuracy of the pressure-measurement technique was validated with single-phase, laminar and turbulent, fully developed data. Two-phase experiments were conducted for eight different inlet conditions and various mass splits at the junction. Comparisons were conducted between the present data and former correlations for the fully developed two-phase pressure drop in rectangular channels with similar sizes. Wide deviations were found among these correlations, and the correlations that agreed best with the present data were identified.