There is considerable recent progress in hair simulations, driven by the high demands in computer animated movies. However, capturing the complex interactions between hair and water is still relatively in its infancy. Such interactions are best modeled as those between water and an anisotropic permeable medium as water can flow into and out of the hair volume biased in hair fiber direction. Modeling the interaction is further challenged when the hair is allowed to move. In this paper, we introduce a simulation model that reproduces interactions between water and hair as a dynamic anisotropic permeable material. We utilize an Eulerian approach for capturing the microscopic porosity of hair and handle the wetting effects using a Cartesian bounding grid. A Lagrangian approach is used to simulate every single hair strand including interactions with each other, yielding fine‐detailed dynamic hair simulation. Our model and simulation generate many interesting effects of interactions between fine‐detailed dynamic hair and water, i.e., water absorption and diffusion, cohesion of wet hair strands, water flow within the hair volume, water dripping from the wet hair strands and morphological shape transformations of wet hair.