In the past work for long time, since the computation required on object deformation and interaction is intensive, when fluid is interacted with rigid bodies, or especially with animating figure, the demand of real-time simulation and rendering could be hardly achieved. This paper presents a novel approach for generating effects simulated by fluid dynamics and interacted by the figure motions. In order to handle the interaction between fluid effect and deformed figure, firstly, the motion trajectory of character is tracked, and then the fluid dynamics is simulated by the model of Smoothed-Particle Hydrodynamics (SPH). Moreover, during the fluid simulation, an efficient algorithm for particle searching is also proposed, in virtue of parallel processing by GPU. Consequently, the simulation of 3D fluid effects with realistic character interaction can be rendered on a consumer-level PC in real-time.