We propose a robust, high-resolution prediction–correction projection immersed interface method (IIM) for solving the unsteady incompressible Navier–Stokes equations with traction boundary conditions, which arise from free surface flows driven by capillary, electric, and elastic forces. This method combines the advantages of traditional body-fitted moving mesh methods and immersed boundary methods (IBM), allowing for the accurate imposition of boundary conditions on free surfaces using Cartesian grids and providing detailed interface information that is typically smoothed out in traditional IBM. The irregular liquid-phase domain is embedded within a square region and discretized using a dynamically adaptive Cartesian mesh. The free surface is captured using a narrow-band level set with hybrid reinitialization. A prediction–correction projection scheme is constructed, incorporating additional pressure predictions and corrections to enhance robustness. The resulting Helmholtz/Poisson equations are solved using the augmented IIM for boundary value problems. Grid refinement analysis demonstrates second-order convergence of the L∞ error, even in challenging cases such as the oscillating drop test with low viscosity. We further apply this method to electrohydrodynamic (EHD) problems, constructing an implicit augmented IIM to solve the equations governing the electric field and charge conservation. Numerical experiments demonstrate that this method accurately addresses highly intense EHD phenomena, such as the formation of Taylor cones, highlighting its robustness.