The greatest challenge when performing large deformation simulations using the CFD‐DEM coupling method lies in the dynamical update of the fluid meshes. To address this problem, a novel CFD‐DEM coupling method integrated with the dynamic unstructured grid is proposed in this work. The mesh initialization and reconstruction are performed by the Constrained Delaunay triangulation (CDT) implemented by the tetgen algorithm. Moreover, the equation of state (EOS) is introduced to consider the impact of fluid compressibility. The reliability of this coupling method is preliminarily verified by the particle sedimentation test. Additionally, undrained triaxial shear and one‐dimensional consolidation tests are conducted to examine the applicability of the proposed method in simulating geotechnical cases. From our analysis, it is found that the shear responses in the undrained triaxial shear test obtained from the proposed method with dynamic mesh are in direct accordance with those led by the constant volume (CV) method. However, difficulties arise in accurately describing the moving boundary by the fixed mesh, leading to unreliable results. Moreover, in the one‐dimensional consolidation test, both the dynamic and fixed grids can capture the Mandel—Cryer effect, which is more pronounced under the dynamic grid, mainly due to the dual impact of the loading device and particle skeleton on the fluid. A greater compressibility specified under the dynamic grid led to a weakening of this effect, whereas its duration is increased. Our work provides valuable insights for effectively dealing with dynamic fluid boundaries.