Comprehending dam failure incidents is crucial for assessing the hazards of abrupt water discharges and enhancing disaster management approaches. This study presents a computational approach for modelling scenarios with a water column and any barrier in the flow path using the mesh-free smoothed particle hydrodynamics (SPH) technique. We will examine the fluid–structure interaction as water flows due to a rectangular dam break incident and interacts with a small obstacle downstream. To accurately represent the complex dynamics of the system, the model handles particle interactions using a cubic kernel function and defines the characteristics of the fluid as weakly compressible. A repulsive boundary condition guarantees that fluid particles are restricted to solid limits, improving the simulation's realism. The research examines the impact of the obstacle on the flow and validates the findings with experimental data. The results indicate that the established SPH-based framework accurately simulates dam break dynamics in the presence of obstacles, enhancing risk assessment and catastrophe mitigation initiatives.