Abstract: A novel continuum approach called particle finite element method (PFEM) which is capable of modelling soil flow in geotechnical engineering is introduced. This approach inherits the solid mathematical foundation of the traditional finite element method in the sense that each incremental analysis is conducted via the classical Lagrangian finite element procedure and also circumvents the computational difficulties resulting from the meshes with fixed geometric topology in the case of large deformations. This paper details the fundamental idea of the PFEM as well as how to develop the PFEM based on an existing finite element program with some key technologies being discovered. To verify its correctness and exhibit its advantages, the PFEM is utilized to simulate the quasi-static and dynamic collapse of granular columns and slope stability problems. It is shown that the PFEM is particularly suitable for the simulation of engineering problems involving solid-fluid transitional behaviour of geomaterials.