Compressible two-phase flow is analyzed based on the arbitrary Lagrangian-Eulerian (ALE) formulation. For water, Tamman type stiffened equation of state is used. Numerical fluxes are calculated using the ALE two-phase Godunov scheme which assumes only that the speed of sound and pressure can be provided whenever density and internal energy are given. Effects of the approximations of a material interface speed are Investigated h method Is suggested to assign a rigid body boundary condition effectively To validate the developed code, several well-known problems are calculated and the results are compared with analytic or other numerical solutions including a single material Sod shock tube problem and a gas/water shock tube problem The code is applied to analyze the refraction and transmission of shock waves which are impacting on a water-gas interface from gas or water medium.