A novel piecewise circular interface construction (PCIC) method for accurate reconstruction of interface in a two-phase flow problem is proposed. This is under the framework of a fixed grid, volume of fluid approach applied on a two-dimensional semistaggered structured grid. Fluid interface in each mixed cell is represented using a geometric template of piecewise circular arc. Data corresponding to arc center coordinates and radius are first predicted using curve fitting methods and corrected with the help of volume fraction constraints. Further corrections are carried out to achieve function (c0) continuity at cell boundaries. The proposed method does not require additional calculations for the determination of curvature (for calculation of surface tension force), since it is obtained as part of reconstruction process itself. For dynamic interface construction, simple analytical expressions are derived to construct edge matched flux polygons. Area of intersection of flux polygons with area covered by primary fluid is determined to effect geometric advection across a PCIC interface. Accuracy of this method is demonstrated by the reconstruction of standard static and dynamically evolving interface problems. Accuracy levels superior to most interface reconstruction methods using PLIC and schemes using higher order curves are established. Finally, the capability to handle a complex two-phase flow problem simulation viz the four-vortex flow field, where interface undergoes breakage and coalescence, is also demonstrated. © 2020 John Wiley & Sons, Ltd.