Modeling foam flow through porous media in the presence of oil is essential for various foam-assisted enhanced oil recovery (EOR) processes. We performed an in-depth literature review of foam-oil interactions and related foam modeling techniques, and demonstrated the feasibility of an improved bubble populationbalance model in this paper. We reviewed both theoretical and experimental aspects of foam-oil interactions and identified the key parameters that control the stability of foam lamellae with oil in porous media. Upon reviewing existing modeling methods for foam flow in the presence of oil, we proposed a unified population-balance model that can simulate foam flow both with and without oil in standard finite-difference reservoir simulators. Steadystate foam apparent viscosity as a function of foam quality was used to evaluate the model performance and sensitivity at various oil saturations and fluid velocities. Our literature review suggests that, among various potential foam-oil interaction mechanisms, the pseudo-emulsion-film (gas/aqueous/oil asymmetric film) stability has a major impact on the foam-film stability when oil is present.