Abstract Contact simulation is essential in modelling mechanical systems. The contact models require accurate geometric information, which is determined through collision detection methods. When the mechanical system includes flexible bodies such as structural components, the dynamic formulation and collision detection can be more challenging, as the geometric boundaries of such components keep changing during the simulation. The floating frame of reference (FFR) formulation is suitable for flexible systems with small deformation. In this work, a stable and efficient dynamic simulation method is introduced for flexible systems with contact based on the FFR formulation. In addition, a curve-based collision detection method is proposed, which is more consistent with the dynamic formulation and more efficient than common existing collision detection methods. Case studies of flexible beams and multibody systems are employed to demonstrate the performance of the proposed dynamic simulation and collision detection methods.