In this talk, we present the numerical simulation of contact dynamics problems with soft materials. The large deformation and frictional contact nonlinearities are modeled based on the smoothed finite element method (SFEM). The SFEM combines the strain smoothing technology and the finite element method, in which all domain integrals are transformed into boundary integrals along the boundary of smoothing domains. At the same time, it avoids taking derivatives of the shape function. No isoparametric transformation or the calculation of any Jacobian matrix is required. This method has low requirements for mesh quality and is suitable for calculating large deformation problems. The frictional contact forces and the relative velocity establish an implicit relationship based on the bi-potential method in the form of augmented Lagrangian. No additional parameters was introduced while the non-penetration condition was satisfied. The results show that this method can efficiently and accurately simulate the contact and large deformation behavior of soft materials.