This paper presents our approach for the computation of free-surface/rigid-body interaction phenomena with emphasis on ship hydrodynamics. We adopt the level set approach to capture the free-surface. The rigid body is described using six-degree-of-freedom equations of motion. An interface-tracking method is used to handle the interface between the moving rigid body and the fluid domain. An Arbitrary Lagrangian–Eulerian version of the residual-based variational multiscale formulation for the Navier–Stokes and level set equations is employed in order to accommodate the fluid domain motion. The free-surface/rigid body problem is formulated and solved in a fully coupled fashion. The numerical results illustrate the accuracy and robustness of the proposed approach.