||The aim of the paper is to use Arbitrary Lagrangian Eulerian (ALE) formulation for fluid–structure interaction for modeling blood flow in artery. Predicting blood flow and its effects on arteries requires simulation of fluid–structure coupling with deformable mesh. For fluid simulation velocity–pressure formulation is used, we present the algorithm which allows to compute fluid velocity and pressure using explicit time integration. This method has been applied successfully for several applications including sloshing tank analysis. For the structure shell type elements with five points integration through the thickness to accurately represent bending effects, are modeled. Since the structure is deformable, to prevent high mesh distortion an elasticity material model for the mesh is used for mesh deformation. For fluid–structure coupling, explicit contact algorithm based on penalty method. Such a model can be used to study the profile of the flow and pressure waves as they propagate along the arteries. In the paper, the onset of a pressure pulse was simulated at the entrance of a three dimension straight artery blood vessel and the resulting dynamic response in the form of a propagating pulse wave through the wall was analyzed and compared. Good agreement was found between the numerical results and the theoretical description of an idealized artery. Work has also been done on implementing the material constitutive models specific for vascular applications.