A Rankine source method with a continuous desingularized free surface source panel distribution is developed to solve numerically a wave–body interaction problem with nonlinear boundary conditions. A body undergoes forced oscillatory motion in a free water surface and the variation of wetted body surface is captured by a regridding process. Free surface sources are placed in continuous panels, rather than points in isolation, over the calm water surface, with free surface collocation points placed on the calm water surface. Nonlinear kinematic and dynamic free surface boundary conditions along the collocation points on the calm water surface are solved in a time domain simulation based on a Lagrange time dependent formulation. Compared with isolated desingularized source points distribution methods, a significantly reduced number of free surface collocation points with sparse distribution are utilized in the present numerical computation. The numerical scheme of study is shown to be computationally efficient and the accuracy of numerical solutions is compared with traditional numerical methods as well as measurements.