Kinetic energy conservation for fixed and moving grids is examined in time-accurate finite element computation of fully unsteady inviscid flows. As numerical algorithms, fractional step method (FSM) and modified SIMPLE are used. To simulate the flow in moving grid system, arbitrary Lagrangian-Eulerian (ALE) method is adopted. In the present study, the energy conserving time integration rule for finite element algorithm is proposed and discussed schematically. It is shown that the discretization by Crank-Nicolson in time and Galerkin (central difference) in space must be used to ensure energy conservation. The developed code has been tested for a standing vortex in fixed or moving grid system, sloshing in a tank and propagation of a solitary wave, and has been shown to be a completely energy conserving algorithm.