Smoothed particle hydrodynamics (SPH) method is a new developed numerical method. The paper studies two-dimensional steady and unsteady flow based on the SPH and considered a variety of conditions. SPH is applied to orifice outflow. The feasibility of model is verified though the comparison between theoretical solution and numerical results. The paper applies the SPH model to the flow of liquid with free surface on Laxiwa dam, and simulates the process of the discharge of the surface outlet. The water recharge boundary is used in the model. The paper gives an analysis between numerical pressure and experimental pressure. The results indicate that it's possible to simulate and research two-dimensional steady and unsteady flow by the smoothed particle hydrodynamics method. KEYWORD: SPH; orifice outflow; surface outlet discharge; water recharge boundary