In this paper we review the Dynamic Van der Waals theory, which is a recent developed method to study phase separation and transition process in multiphase flow. Gradient contributions are included in the entropy and energy functions, and it’s particularly useful and non-trivial if we consider problems with temperature change. Using this theory, we can simulate that, a droplet in an equilibrium liquid will be attracted to the heated wall(s) which was initially wetted, which is the main cause of the famous hydrodynamic phenomena-Leidonfrost Phenomena. After more than ten years development, this theory has been widely used to study the fluid flow in vaporing and boiling process, e.g., droplet motion. Furthermore, this theory has been combined with phase field model, which could be extended to solid-liquid phase transition. There has also been researches about constructing LBM scheme to extend to the Dynamic Van der Waals theory, using Chapman-Enskog analyze. In all, due to its rigorous thermodynamic derivation, this theory has now become the fundamental theoretical basis in the heated multiphase flow.