The bubble motion during nucleate boiling in a microchannel is investigated by numerically solving the equations governing conservation of mass, momentum and energy in the liquid and vapor phases. The liquid-vapor interface is tracked by a level set method which is modified to include the effects of phase change at the interface and contact angle at the wall. Also, the evaporative heat flux from the thin liquid film that forms underneath a growing bubble attached to the wall is incorporated in the analysis. Based on the numerical results, the effects of channel size, contact angle, wall superheat and waiting period on the bubble growth and heat transfer in a microchannel are quantified.