A level set method, the TVD scheme of second-order upwind procedure coupled with flux-limiter, and SIMPLE algorithm were incorporated to simulate the flow and interfacial motion of immiscible two-fluids with large density ratio and viscosity ratios, large topology distortion and surface tension. As a numerical example axi-symmetric rising bubbles were investigated. It is found that the method is numerically stable and has good convergence property and the results are in good agreement with other works.