Based on the traditional Smoothed Particle Hydrodynamics (SPH) algorithm, the linked-list search algorithm combined with the variable smoothing length and square support domain was put forward to improve the calculation efficiency and guarantee the calculation accuracy. The physical process of high velocity fragment impact on a broadside liquid cabin was programmed for simulation. The numerical results agreed well with those of the general software ANSYS AUTODYN, which verifies the effectiveness and feasibility of the numerical method. From the perspective of the outer plate thickness of the liquid cabin, the width of the liquid cabin, and incident angle of the fragment, the influence of these parameters on protective mechanisms was analyzed to provide a basis for protective design of a broadside liquid cabin. Results show that the influence of outer plate thickness is not obvious; therefore, the conventional design can be adopted in the design of the outer plate. The width of the liquid cabin has a great influence on the residual velocity of the fragment and the width of the liquid cabin should be designed to be as wide as possible under the premise of meeting other requirements. There is a certain incident angle in which the velocity attenuation of the fragment is most obvious, and the high-pressure zone near the inner plate is asymmetric. The inner plate of liquid cabin should be strengthened according to the hull form, principal dimensions, and vulnerable points.