The conventional extended finite element method (XFEM) is a powerful tool for simulating crack-related problems in materials; however, several limitations exist, such as numerical instabilities and convergence issues. These problems arise because enriched elements have higher stiffness than standard elements, and this difference can cause computational difficulties. To overcome these limitations, we developed the cell-based smoothed extended finite element method (CS-XFEM), an advanced computational technique designed to simulate the intricate interactions between ultrasonic waves and randomly distributed cracks within solid materials. This innovative approach integrates a cell-based smoothing technique into the XFEM, effectively softening the stiffness of the enriched elements around crack tips. Therefore, the CS-XFEM eliminates numerical instability, providing a more stable and reliable computational framework. In this study, numerical experiments were conducted in which plasticity properties were assigned to both the crack bodies and tips to reflect crack yielding. Further, frictional contact in the crack body elements was formulated using the Heaviside function, and deformation around the crack tips was approximated using a singular function. Through comprehensive numerical investigations, we demonstrated that the conventional XFEM fails to converge and, instead, diverges when ultrasonic waves interact with randomly distributed cracks. By contrast, our proposed CS-XFEM method demonstrates strong convergence capabilities, rendering it well-suited for exploring the interactions between ultrasonic waves and randomly distributed cracks under varying crack quantities, lengths, and friction coefficients. Overall, the proposed CS-XFEM is an efficient, accurate, and robust method for investigating the acoustic nonlinearity induced by randomly distributed cracks with frictional contact in solid structures.