Methods of particles are now recognized as an effective tool for numerical modeling of dynamic mechanical and coupled processes in solids and liquids. This chapter is devoted to a brief review of recent advances in the development of the popular particle-based discrete element method (DEM). DEM is conventionally considered as a highly specialized technique for modeling the flow of granular media and the fracture of brittle materials at micro- and mesoscopic scales. However, in the last decade, great progress has been made in the development of the formalism of this method. It is largely associated with the works of the scientific group of Professor S. G. Psakhie. The most important achievement of this group is a generalized formulation of the method of homogeneously deformable discrete elements. In the chapter, we describe keystones of this implementation of DEM and a universal approach that allows one to apply various rheological models of materials (including coupled models of porous fluid-saturated solids) to a discrete element. The new formalism makes possible qualitative expansion of the scope of application of the particle-based discrete element technique to materials with various rheological properties and to the range of considered scales form microscopic to macroscopic. The capabilities of this method are especially in demand in the study of the features of contact interaction of materials. To demonstrate these capabilities, we briefly review two recent applications concerning (a) the effect of adhesive interaction on the regime of wear of surface asperities under tangential contact of bodies and (b) the nonmonotonic dependence of the stress concentration in the neck of the human femur on the dynamics of hip joint contact loading.