In the present paper, a direct forcing/fictitious domain (DF/FD)–level set method is proposed to simulate the twophase flow–body interaction. The DF/FD does not sacrifice accuracy and robustness by employing a discrete δ (Dirac delta) function to transfer quantities between the Eulerian nodes and Lagrangian points explicitly as the immersed boundary method. The advantages of this approach are the simple concept, the easy implementation and the utilization of original governing equation without modification. The main idea is to combine DF/FD method with the level set method in the Cartesian coordinates. We present the results of a number of test cases to illustrate the effectiveness of the proposed method for single-phase flow–body interaction problem and the two-phase flows with a stationary body. Eventually, the simulations of various water entry problems have been conducted to validate the capability and the accuracy of the present method on solving the twophase flow–body interaction. Consequently, the present results are found to be in good agreement with those of previous studies. Copyright © 2013 John Wiley & Sons, Ltd.