In this paper, we present a method for simulating the interaction of fluids with deformable solids. The method is designed for the use in interactive systems such as virtual surgery simulators where the real-time interplay of liquids and surrounding tissue is important. In computer graphics, a variety of techniques have been proposed to model liquids and deformable objects at interactive rates. As important as the plausible animation of these substances is the fast and stable modeling of their interaction. The method we describe in this paper models the exchange of momentum between Lagrangian particle-based fluid models and solids represented by polygonal meshes. To model the solid-fluid interaction we use virtual boundary particles. They are placed on the surface of the solid objects according to Gaussian quadrature rules allowing the computation of smooth interaction potentials that yield stable simulations. We demonstrate our approach in an interactive simulation environment for fluids and deformable solids. Copyright © 2004 John Wiley & Sons, Ltd.