Thispaperdescribesanovelsharpinterfaceapproachformodelingthecavitationphenomenainincompressibleviscousflows.Aone-fieldformulationisadoptedforthevapor-liquidtwo-phaseflowandtheinterfaceistrackedusingavolumeoffluid(VOF)method.PhasechangeattheinterfaceismodeledusingasimplificationoftheRayleigh-Plessetequation.Interfacejumpconditionsinvelocityandpressurefieldaretreatedusingalevelsetbasedghostfluidmethod.Thelevelsetfunctionisconstructedfromthevolumefractionfunction.Amarchingcubesmethodisusedtocomputetheinterfaceareaattheinterfacegridcells.Aparallelfastmarchingmethodisemployedtopropagateinterfaceinformationintothefield.Adescriptionoftheequationsandnumericalmethodsispresented.Resultsforacavitatinghydrofoilarecomparedwithexperimentaldata.