Capillary pressure has always been a point of concern for reservoir modeling. It describes the initial pressure at which the de-saturation will be initiated and at the other extreme; it defines the irreducible saturation of the displaced fluid. In this study, Brooks & Corey and Van Genuchten models are used to predict maximum displacement pressure data with reference to non-uniformity in pore-size distribution. Both models are compared and a correlation has been developed to predict maximum displacement pressure with reference to variation in pore-size distribution index for Van Genuchten model. Further, the fluid distribution and water-oil contact level with reference to free-water level has been calculated using both models for reservoir modeling. The obtained results show that Van Genuchten model gives higher thickness for transition zones and difference in water-oil contact level with reference to free water level, as compared to Brooks and Corey correlation. Furthermore, on comparative basis, these differences increase with the decrease in uniformity in pore size distribution. Thus, the degree of uncertainty and complexity in developing reservoirs and analyzing fluid dynamics increases, in case of tighter or heterogeneous formations. Further, this study also shows that density also plays an important role in fluid dynamics and distribution with the reservoir.