The separation of gas from gas-liquid mixture in horizontal wells has become a growing concern in the oil and gas industry. The produced free gas reduces the efficiency of rod pump systems, minimizes oil production and can lead to the failure of the rod pump system due to gas locking phenomena. The impact of two-phase flow on the new horizontal well gas anchor’s performance was investigated experimentally. Each experiment was conducted in a transparent horizontal well flow loop by using water and air as the test fluids. Experiments with and without the new gas anchor in the flow loop cases were studied. The new tool has two mechanisms to prevent gas phase from entering the tubing. The first mechanism is the breakage of the mixture’s wave by the bull plug of the tool. The second mechanism is the separation of small gas bubbles due to the flow through the tortuous path inside the tool. This experimental program quantifies the tool performance regarding the first working mechanism only. The bubble separation via the tortuous path mechanism was not investigated. The results showed that both with and without tool cases can separate 90 – 100% gas from the mixture, if the inlet of tubing or the tool was fully submerged under liquid phase of the mixture at all time. This condition was achieved under stratified flow where the horizontal part of the well was toe flat or toe-up (0°, +1°, and +2°). The wave breakage mechanism by the bull plug of the tool was confirmed visually. This breakage mechanism established the advantage of using the new gas anchor over no-tool condition.