The fluid flow problem in the gas-condensate reservoir is more important due to strong pressure difference which comes from condensate blockage [1]. Simulation of fluid flow around the well in gas-condensate reservoirs usually requires fine-scale discretization in time and space when pressure drops blew the dew point [2, 3]. In this paper, a new method of the overlapping grid is introduced in which around the well area, a radial grid is overlapped on a coarse Cartesian grid. This approach is validated by simulating a simple gas-condensate reservoir and comparing the results with those of a reference fine radial grid. The method is implemented in the open-source Matlab Reservoir Simulation Toolbox (MRST) using the modified black-oil model for three Cartesian grids, i.e. 21×21, 101×101, and 1001×1001.