Abstract: The two-grid finite element approximation to the stream function form of the stationary Navier-Stokes equations was analyzed. The algorithms involve solving one small, nonlinear coarse mesh system, one linear problem on the fine mesh system, and a linear correct problem on the coarse mesh. The algorithms with the correct problem and without the correct problem were discussed. The algorithms produce an approximate solution with the optimal, asymptotic accuracy for any fixed Reynolds number.