The smoothed particle hydrodynamics (SPH), which is a class of meshfree particle methods (MPMs), has a wide range of applications from micro‐scale to macro‐scale as well as from discrete systems to continuum systems. Graphics hardware, originally designed for computer graphics, now provide unprecedented computational power for scientific computation. Particle system needs a huge amount of computations in physical simulation. In this paper, an efficient parallel implementation of a SPH method  on graphics hardware using the Compute Unified Device Architecture  is developed for fluid simulation . Comparing to the corresponding CPU implementation, our experimental results show that the new approach allows significant speedups of fluid simulation through handling huge amount of computations in parallel on graphics hardware.