In order to improve the accuracy of the solution near the boundary in an analysis of viscous flow around an arbitrary boundary which move and be deformed using an Eulerian concept, a level-set based grid deformation method is introduced to concentrate grid points near the boundary. This paper presents a new monitor function which can easily control the level of the concentration of grid points along the boundary. Computations for steady flow around a semi-circular cylinder mounted on the bottom of the flow domain were carried out to check the improvement of the solution using the adaptive grid system with an immersed boundary method. The present numerical results show a good agreement with the solutions obtained by a body fitted grid system and more accurate solutions than those computed with non-adaptive grid system. For the validation of mechanical usefulness of the present method, an expanded analysis of flow around multi-body fixed in the flow domain was carried out. Finally, the present moving adaptive grid method was applied to a two-dimensional bubble rise problem. The computed results show well adapted grid points around the boundary of the bubble at every time and a good agreement with the result calculated by fixed grid system.