Atmospheric-pressure fast ionization waves (FIWs) generated by nanosecond, high voltage pulses are able to propagate long distances through small diameter dielectric tubes or channels, and so deliver UV fluxes, electric fields, charged and excited species to remote locations. In this paper, the dynamics of FIW splitting and merging in a branched dielectric channel are numerically investigated using a two-dimensional plasma hydrodynamics model with radiation transport, and the results are compared with experiments. The channel consists of a straight inlet section branching 90◦ into a circular loop which terminates to form a second straight outlet section aligned with the inlet section. The plasma is sustained in neon gas with a trace amount of xenon at atmospheric pressure. The FIW generated at the inlet approaches the first branch point with speeds of ≈108 cm s−1, and produces a streamer at the inlet-loop junction. The induced streamer then splits into two FIW fronts, each propagating in opposite directions through half of the loop channel. The FIWs slow as they traverse the circular sections due to a shorting of the electric field by the other FIW. Approaching the loop-outlet junction, the two FIW fronts nearly come to a halt, induce another streamer which goes through further splitting and finally develops into a new FIW front. The new FIW increases in speed and plasma density propagating in the straight outlet channel. The electrical structure of the FIWs and the induced streamers during the splitting and merging processes are discussed with an emphasis on their mutual influence and their interaction with the channel wall. The FIW propagation pattern is in good agreement with experimental observations. Based on numerical and experimental investigations, a model for the splitting and merging FIWs in the branched loop channel is proposed.