This document describes a project to simulate physically-based fluids like smoke and fire in real-time using GPU processing. The author creates a framework to simulate fluids on the GPU using DirectX 11 Compute Shaders. Various level of detail and performance optimization techniques from games are adopted, like frame skipping. Results show the simulations maintaining over 800 FPS on a high-end GPU and 50 FPS on a low-end GPU, proving real-time fluid simulation is possible with optimizations.