A real-time two-dimensional water wave simulation method based on wave annulus particle packet was proposed to reduce computational cost in the water wave simulation process and improve its diffusion phenomenon's fidelity. In this method， wave annulus particle was used as primary calculation unit， the concept of “wave packet” was inherited inside particles， and visual effect of water waves was reproduced by using superposition of water waves in multiple frequency bands. Collision calculation was reduced by adding a mirror wave source to avoid complex geometric judgment when calculating the water wave reflection process. Additional calculation accuracy parameters were provided so that the algorithm could adjust calculation complexity of water wave reflection according to different hardware calculation capabilities. Experimental results show that the proposed method can use fewer particles to simulate natural water wave motion and avoid problem of water wave fracture after collision reflection. The performance test on the same hardware platform shows that rendering frame rate of the proposed wave annulus simulation algorithm is at least 60% higher than that of traditional wave packet algorithm and even achieves an acceleration effect of more than 400% in some cases with particularly complex water wave states.