We present an extended finite element method (XFEM) for the direct numerical simulation of the flow of viscoelastic fluids with suspended particles. Formoving particle problems, we devise a temporary arbitrary Lagrangian-Eulerian (ALE) scheme which defines the mapping of field variables at previous time levels onto the computational mesh at the current time level. In this method, a regular mesh is used for the whole computational domain including both fluid and particles. A temporary ALE mesh is constructed separately and the computational mesh is kept unchanged throughout the whole computations. Particles are moving on a fixed Eulerian mesh without any need of re-meshing. For mesh refinements around the interface, we combine XFEM with the ...