A dynamic grid adaptive method has been developed for use with the asymmetric weighted residual method. The method automatically adapts the number and position of the spatial mesh points as the solution of hyperbolic or parabolic vector partial differential equations progresses in time. The mesh selection algorithm is based on the minimization of the L2 norm of the spatial discretization error. The method permits the accurate calculation of the evolution of inhomogeneities, like wave fronts, shock layers, and other sharp transitions, while generally using a coarse computational grid. The number of required mesh points is significantly reduced, relative to a fixed Eulerian grid. Since the mesh selection algorithm is computationally inexpensive, a corresponding reduction of computing time results.