In the present work, a numerical investigation on the growth and collapse of a cavitation bubble between two parallel heated walls and its effect on the heat transfer are conducted. The Navier-Stokes equations and volume of fluid (VOF) model are employed to describe the flow of fluid and capture the motion of liquid-gas interface. The numerical results have been compared with those experimental results in the classical literature. The consistency of the contrast proves the correctness and reliability of the present model. From the present data, cavitation bubble exhibits unique dynamic behaviors different from those in the situation of a single solid wall. Firstly, the bubble is squeezed at the middle of the bubble, and thus forms a dumb-bell shape (the first collapse stage). At the end of the first collapse stage, the original bubble is split into two sub-bubbles, which are finally penetrated by the formed high-speed liquid micro-jet (the second collapse stage). The whole collapse is finished within less than two milliseconds. During the whole collapse, wall temperate in the central regions of the wall has been decreased. By analyzing the velocity field of the liquid jet, it can be concluded that, in the first collapse stage, the motion of inside the bubble leads to the heat transfer enhancement, while the impingement of liquid jet on the wall is mainly responsible for the heat transfer enhancement in the second collapse stage.