In this paper, we propose a smoothed stable extended finite element method (S2XFEM) by combining the strain smoothing with the stable extended finite element method (SXFEM) to efficiently treat inclusions and/or voids in hyperelastic matrix materials. The interface geometries are implicitly represented through level sets and a geometry based error indicator is used to resolve the geometry. For the unknown fields, the mesh is refined based on a recovery based error indicator combined with a quadtree decomposition guarantee the method's accuracy with respect to the computational costs. Elements with hanging nodes (due to the quadtree meshes) are treated as polygonal elements with mean value coordinates as the basis functions. The accuracy and the convergence properties are compared to similar approaches for several numerical examples. The examples indicate that S2XFEM is computationally the most efficient without compromising the accuracy. © 2019 Elsevier Masson SAS