Abstract: We present a general method for modeling and animating liquids. The system is specifically designed for computer animation and handles viscous liquids as they move in a 3D environment and interact with graphics primitives such as parametric curves and moving polygons. We combine an appropriately modified semi-Lagrangian method with a new approach to calculating fluid flow around objects. This allows us to efficiently solve the equations of motion for a liquid while retaining enough detail to obtain realistic looking behavior. The object interaction mechanism is extended to provide control over the liquid's 3D motion. A high quality surface is obtained from the resulting velocity field using a novel adaptive technique for evolving an implicit surface.