In this work, we develop a numerical strategy for solving two‐phase immiscible incompressible fluid flows in a general arbitrary Lagrangian–Eulerian framework. As we use a conforming mesh moving with one of the fluids, there is no need to track or reconstruct the interface explicitly. A sharp interface, discontinuity in the fluid properties, and the jump in the pressure field are all accurately modeled using the dummy‐node technique. One of the challenges that this work addresses is to obtain a C0‐continuous approximation for the surface tension force term on the reference configuration, and to obtain its consistent linearization within the context of a Newton–Raphson strategy. It is shown by means of various numerical examples that the strategy is computationally efficient and robust, and circumvents the need for remeshing upto significantly large deformations.