To solve the problem of computation termination, low computational precision and efficiency caused by mesh distortion during simulation, this paper conducts the secondary development of the ABAQUS software through python. A two-dimensional local mesh dynamic refinement algorithm is proposed. The development of the whole algorithm program is completed by studying the algorithm of the mesh refinement criterion and refinement method and the transfer process in the physics field. The algorithm is applied to two-dimensional cutting simulation to realize dynamic refinement of local mesh. Compared with the model of global encrypted mesh, the computational efficiency of local mesh dynamic refinement is improved by 210% when the simulation accuracy error is within 5%. Finally, the accuracy of the two-dimensional cutting simulation model established by the algorithm is verified by experiments. The simulation results are basically consistent with the experimental results.