The present paper reports the development and application of Finite Particle Method for viscous fluid simulation. The main effort in present study is focused on increase of accuracy. To improve accuracy two approaches are studied. First of all, consistency of standard SPH restored using FPM. Secondly, automatic adaptivity and clustering of particles is remedied by applying shifting algorithm. Moreover new shifting appropriate for free surface flows introduced. Finally new algorithm validated and verified with 2D and 3D benchmarks.