AbstractWe offer a modern interpretation of Lagrangian hydrodynamics as employed in Lagrangian simulations of compressible fluid flow. Our main result is to show that artificial viscosity, traditionally viewed as a numerical artifice to control unphysical oscillations in flows with shocks, actually represents a physical process and is necessary to derive accurate simulations in any compressible flow. We begin by reviewing the origins of two numerical devices, artificial viscosity and finite‐volume methods. We proceed to construct a mathematical (PDE) model that incorporates those numerics and in which a new length scale, the observer, arises representing the discretization. Associated with that length scale, there are new inviscid fluxes that are the artificial viscosity as first formulated by Richtmyer and an artificial heat flux postulated by Noh but typically not included in Lagrangian codes. We discuss the connection of our results to bivelocity hydrodynamics. We conclude with some speculation as to the direction of future developments in multidimensional Lagrangian codes as computers get faster and have larger memories.