Dimethyl ether (DME) is a widely used industrial compound, and Shell developed a chemical EOR technique called DMEenhanced waterflood (DEW). DME is applied as a miscible solvent for EOR application to enhance the performance of conventional waterflood. When DME is injected into the reservoir and contacts the oil, the first-contact miscibility process occurs, which leads to oil swelling and viscosity reduction. The reduction in oil density and viscosity improves oil mobility and reduces residual oil saturation, enhancing oil production. A numerical study based on compositional simulation has been developed to describe the phase behavior in the DEW model. An accurate compositional model is imperative because DME has a unique advantage of solubility in both oil and water. For DEW, oil recovery increased by 34% and 12% compared to conventional waterflood and CO₂ flood, respectively. Compositional modeling and simulation of the DEW process indicated the unique solubility effect of DME on EOR performance.