The objective of the present study is to develop and validate a two-way coupling simulation method between viscous fluid and multibody dynamics to estimate the power generation performance of point absorber wave energy converters. For numerical analysis of fluid dynamics, an enhanced density correction model was proposed to improve the accuracy and stability of the pressure calculation in DualSPHysics, an open-source code based on smoothed particle hydrodynamics (SPH). Through 2D hydrostatic and wave generation simulations, it was seen that the relative error in the average pressure was reduced from 11.81% to 1.64%. In addition, an interaction interface was developed to enable coupling simulation with RecurDyn, a commercial software for the simulation of multibody dynamics. Simulations were performed for a 3D single-body cylinder with a simple shape and a two-body floating wave energy converter (WEC) in regular waves, varying the linear damping coefficient of the power take-off (PTO) system to verify the proposed coupling simulation method for fluid-multibody dynamics. The results were benchmarked against experimental data, revealing a relative error of 1.05% with the experimental results when employing a high damping coefficient for the PTO system. Furthermore, to improve the efficiency of the two-body WEC, two design modifications were suggested; their impact on power generation performance improvement was examined. The developed method is anticipated to contribute to research aiming to enhance the power generation efficiency of various wave power devices with multiple elements and joints, pending further validation and refinement of the simulation approach.