This paper describes a three dimensional computer program SPLASH that solves Navier-Stokes equations based on the Arbitrary Lagrangian Eulerian (ALE) finite element method. SPLASH has been developed for application to the fluid dynamics problems including the moving boundary of a liquid metal cooled Fast Breeder Reactor (FBR). To apply SPLASH code to the free surface behavior analysis, a capillary model using a cubic Spline function has been developed. Several sample problems, e.g., free surface oscillation, vortex shedding development, and capillary tube phenomena, are solved to verify the computer program. In the analyses, the numerical results are in good agreement with the theoretical value or experimental observance. Also SPLASH code has been applied to an analysis of a free surface sloshing experiment coupled with forced circulation flow in a rectangular tank. This is a simplified situation of the flow field in a reactor vessel of the FBR. The computational simulation well predicts the general behavior of the fluid flow inside and the free surface behavior. Analytical capability of the SPLASH code has been verified in this study and the application to more practical problems such as FBR design and safety analysis is under way.