In this paper, an interactive dynamic simulation method is proposed to solve computational models of soft tissue undergoing large deformation, collision detection, and volume conservation in medical surgical simulation visualization. During the process of implementation of the interactive dynamic simulation method, the point-based method is used to simulate the elastic solids undergoing large deformations and the position-based method is used to simulate the objects collision, friction and volume conservation. Numerical results demonstrate that the proposed method improves the efficiency and stability of the response of heterogeneous soft tissue undergoing contact or even the multi-organs interactions, and it can be extended to interactive biopsy and cutting simulation.