The advanced numerical framework for cavitating flows in a context of variational multiscale methods is presented. The flow field is governed by the Navier–Stokes equations coupled with a transport equation for the vapor/volume fraction and formulated on a moving domain using Arbitrary Lagrangian-Eulerian description. Two homogeneous misture models are compared, namely the Merkle and Zwart cavitation models. The set of equations is discretized in space using finite element methods. The formulation is enhanced with a weak imposition of the Dirichlet boundary condition on a wall and a sliding interface formulation to handle the components in a relative motion. Detailed mathematical description and solution procedure is presented, together with different linearization techniques. The framework is validated using available experimental data, ranging from cavitating flow over a 3D hemispherical fore-body to cavitating flow over the INSEAN E779A marine propeller. The formulation is also applied to analyze the performance of a vertical-axis hydrokinetic turbine. The application of higher-order NURBS basis functions is also explored and compared to a classical linear FEM.