To study the formation and evolution of sub-galactic scale structures, we have added SPH (Smoothed Particle Hydrodynamics) method into an existing cosmological PMTree code, GOTPM. To follow the evolution of gas particles, we consider heating/cooling processes, star formation, and energy & metal feedback by supernova explosion. We have performed various tests for the new code and found that the results reproduce observed quantities or follow the known analytic solutions. We present a test simulation of isolated disk galaxy with a focus on whether the star formation reproduces the observed features.