A numerical analysis by a VOF method is presented for studying the hydrodynamic mechanisms of the rheomixing process by a twin-screw extruder (TSE). The simplified flow field is established based on a systematic analysis of flow features of immiscible alloys in TSE rheomixing process. The studies focus on the fundamental microstructure mechanisms of rheological behaviour in shear-induced turbulent flows. It is noted that the microstructure of immiscible alloys in the mixing process is strongly influenced by the interaction between droplets, which is controlled by shearing forces, viscosity ratio, turbulence, and shearing time. The numerical results show a good qualitative agreement with the experimental results, and are useful for further optimisation design of prototypical rheomixing processes.