In this report we present an approach for accurate and consistent implementation of gravity effects in compositional streamline simulation. The approach is based on an operator-splitting technique, successfully applied in streamline simulation of black-oil models. The method is demonstrated to conserve mass. Its application adds only marginally to the overall CPU requirement. We provide a detailed description of the approach to incorporate gravity effects and demonstrate the efficiency of compositional streamline simulation, even for cases where gravity segregation plays an important role in the overall process performance. The new approach is demonstrated to be in excellent agreement with commercial FD simulators for prediction of flows in 2D vertical and multi-well 3D geometries. Finally, we outline the work required to extend the compositional streamline approach to handle three-phase flow modeling, also including gravity.