Numerical analysis is made on the thermal performance of micro heat pipe in a axial flat grooved channel. The flow of liquid and vapor is investigated in trapezoidal grooves and the effect of variable shear stress along the interface of the liquid and vapor considered. The results from this study are obtained in the axial variation of pressure difference between vapor and liquid, contact angle, velocity of liquid and vapor and so forth. In addition, maximum heat transport capacity of micro-heat pipe is provided by varying the operation temperature, and compared with that from Schneider and Devos's model in which the interfacial shear stress is neglected.