In order to improve the accuracy of interface capturing and keeping the computational efficiency, an adaptive VOF method on unstructured grid is proposed in this paper. The volume fraction in each cell is regarded as the criterion to locally refine the interface cell. With the movement of interface, new interface cells (0 ≤ f ≤ 1) are subdivided into child cells, while those child cells that no longer contain interface will be merged back into the original parent cell. In order to avoid the complicated redistribution of volume fraction during the subdivision and amalgamation procedure, a predictor‐corrector algorithm is proposed to implement the subdivision and amalgamation procedures only in empty or full cell ( f = 0 or 1). Thus volume fraction in the new cell can take the value from the original cell directly, and the interpolation of the interface is avoided. The advantage of this method is that the re‐generation of the whole grid system is not necessary, so its implementation is very efficient. Moreover, an advection flow test of a hollow square was performed, and the relative shape error of the result obtained by adaptive mesh is smaller than those by non‐refined grid, which verifies the validation of our method.