Micro-nozzle, based on the MEMS technology, has played an important role in orbit positioning, attitude adjusting and other applications of micro-satellites. The continuous no-slip model of two-dimensional compressible laminar flow in the micro-nozzle was proposed and solved numerically by finite control volume method. The flow and heat transfer in the micro-nozzle were computed under different conditions, including different inlet pressures, different inlet temperatures and different divergent angles. Flow field and effects of these conditions on the propulsion performance were analyzed. Finally, simulated solutions were compared and validated with the experimental results.