The classical Lax–Wendroff (LW) method employs explicit second order central difference schemes to solve partial differential equations. Recently, the authors in Sengupta et al. (2023) have identified numerical parameter ranges in performing large eddy simulation (LES) using this classical LW method. In a bid to improve these numerical parameter ranges for high fidelity computations, a new non-uniform grid based compact scheme for LW method (NUCLW) is developed here. This new method uses sixth order non-uniform compact scheme (NUC6) for the first and higher order derivatives. Reported global spectral analysis confirms substantial improvement in the resolution and accuracy of NUCLW scheme over the classical LW scheme. A significant advantage of the present scheme is its ability to compute solutions for non-uniform, structured grids, and that does not suffer degradation in accuracy. The potential of the NUCLW scheme for high accuracy computations is demonstrated by solving 2D incompressible Navier–Stokes equations for the benchmark unsteady flow inside a square lid driven cavity problem for a subcritical Reynolds number of 3200 and a post-critical Reynolds number of 10,000 and simulating the instability of the Taylor–Green vortex problem. These demonstrate the ability of the NUCLW scheme to solve the Navier–Stokes equations for high fidelity simulations such as LES/DNS with enhanced ranges of numerical parameters with respect to enhanced accuracy and faster computations.