Freeze-thaw processes significantly modulate hydraulic and thermal characteristics of soil. The changes in the frost and thaw fronts (FTFs) affect the water and energy cycles between the land surface and the atmosphere. Thus, the frozen soil comprising permafrost and seasonally frozen soil has important effects on the land surface hydrology in cold regions. In this study, a two-directional freeze and thaw algorithm is incorporated into a thermal diffusion equation for simulating FTFs. A local adaptive variable-grid method is used to discretize the model. Sensitivity tests demonstrate that the method is stable and FTFs can be tracked continuously. The FTFs and soil temperature at the Qinghai-Tibet Plateau D66 site are simulated hourly from September 1, 1997 to September 22, 1998. The results show that the incorporated model performs much better in the soil temperature simulation than the original thermal diffusion equation, showing potential applications of the method in land-surface process modeling.