The cross-stream migration of a deformable drop in two-dimensional Hagen–Poiseuille flow at finite Reynolds numbers is studied numerically. In the limit of a small Reynolds number (< 1), the motion of the drop depends strongly on the ratio of the viscosity of the drop fluid to the viscosity of the suspending fluid. For viscosity ratio 0.125 a drop moves toward the centre of the channel, while for ratio 1.0 it moves away from the centre until halted by wall repulsion. The rate of migration increases with the deformability of the drop. At higher Reynolds numbers (5–50), the drop either moves to an equilibrium lateral position about halfway between the centreline and the wall – according to the so-called Segre–Silberberg effect or it undergoes oscillatory motion. The steady-state position depends only weakly on the various physical parameters of the flow, but the length of the transient oscillations increases as the Reynolds number is raised, or the density of the drop is increased, or the viscosity of the drop is decreased. Once the Reynolds number is high enough, the oscillations appear to persist forever and no steady state is observed. The numerical results are in good agreement with experimental observations, especially for drops that reach a steady-state lateral position. Most of the simulations assume that the flow is two-dimensional. A few simulations of three-dimensional flows for a modest Reynolds number (Re = 10), and a small computational domain, confirm the behaviour seen in two dimensions. The equilibrium position of the three-dimensional drop is close to that predicted in the simulations of two-dimensional flow.