Newtonian and non-Newtonian dispersed phase droplet formation in non-Newtonian continuous phase in T-junction and cross junction microchannels are investigated by the immiscible lattice BGK model. The effects of the non-Newtonian fluid power-law exponent, viscosity and interfacial tension on the generation of the droplet are studied. The final droplet size, droplet generation frequency, and detachment point of the droplet change with the power-law exponent. The results reveal that it is necessary to take into account the non-Newtonian rheology instead of simple Newtonian fluid assumption in numerical simulations. The present analysis also demonstrates that the lattice Boltzmann method is of potential to investigate the non-Newtonian droplet generation in multiphase flow.