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NHR-200-II is a small integrated pressurized water reactor with 200 MW core thermal power. The core heat is transferred to two independent intermediate circuits via fourteen in-vessel primary heat exchangers (PHE), and the heat in the intermediate circuits is transferred to feedwater by two steam generators (SG) in the two intermediate circuits respectively. A passive residual heat removal (PRHR) branch is connected to each intermediate circuit to remove core decay heat under postulated accidents. During normal operation, PRHR branches are isolated by valves while SG branches in intermediate circuits are open. The valves in PRHR branches will be opened and the isolation valves of SG branches will be closed during decay heat removal scenarios. The decay heat removal capacity of NHR-200-II PRHRS could be seriously deteriorated once the isolation valves for SG branches fail to close, which was confirmed in a scaled integral test loop previously. Current understanding of PRHRS's thermal- hydraulic characteristics with possible isolation failure in SG branches is limited. In this paper, the NHR-200-II PRHRS is modeled with RELAP5 considering the case of success and fail to isolate SG branches. A series of numerical simulations are carried out to study the impact of various parameters, such as the initial temperature, the size of the intermediate circuits' header, and the initial flow direction in the intermediate circuits. Oscillatory flow is found when SG branches fail to be isolated under certain parameters combinations. An improved PRHRS design is purposed to eliminate possible flow oscillations, and the purposed improved design are tested by numerical simulations. [ABSTRACT FROM AUTHOR]