We propose a new ghost fluid approach for free surface and solid boundary conditions in Smoothed Particle Hydrodynamics (SPH) liquid simulations. Prior methods either suffer from a spurious numerical surface tension artifact or drift away from the mass conservation constraint, and do not capture realistic cohesion of liquid to solids. Our Ghost SPH scheme resolves this with a new particle sampling algorithm to create a narrow layer of ghost particles in the surrounding air and solid, with careful extrapolation and treatment of fluid variables to reflect the boundary conditions. We also provide a new, simpler form of artificial viscosity based on XSPH. Examples demonstrate how the new approach captures real liquid behaviour previously unattainable by SPH with very little extra cost. CR Categories: Computer Graphics [I.3.7]: Three-Dimensional Graphics and Realism—Animation; Computer Graphics [I.3.5]: Computational Geometry and Object Modeling—Physically based modeling