The smoothed particle finite element method (SPFEM) is an effective framework for large deformation analysis. The original SPFEM possesses the rank deficiency issue due to the direct nodal integration technique, which can be overcome by incorporating the strain gradient stabilization method. However, an extra volumetric locking due to the strain gradient stabilization term has been found. In this study, we propose a simple and efficient approach, the B‐dev approach, which only considers the deviatoric part of the smoothed strain gradient for stabilization to overcome the volumetric locking issue. First, the correctness of the stabilized SPFEM method is verified by an elastic cantilever beam vibration problem without considering incompressibility. Then, through the example of the strip footing penetration problem, the volumetric locking in the stabilized SPFEM is demonstrated and the capability of the proposed B‐dev approach in terms of overcoming the volumetric locking is verified. Furthermore, the stabilized SPFEM with B‐dev approach is applied to two types of elastoplastic problems in geotechnical engineering. All numerical results illustrate that the proposed approach can improve the performance of the stabilized SPFEM in dealing with incompressible and large deformation problems in geomechanics.