This research focus on investigating the effect of particle size on properties and droplet formation of disperse dye multiphase fluid. The results show that the stability, spreading area on the transfer paper and transfer rate increase with decreasing the particle size of disperse dye in multiphase fluid. The droplet formation process of multiphase fluid from a fine pinhole is composed of ejection, stretching, necking, pinch-off, recoil and recombination of primary drop and satellite. The larger particle size of the disperse dye, the shorter droplet pinch-off time is. And the larger disperse dye content leading to the smaller pinch-off time. A small droplet following the primary particles is formed when disperse dye content is high.