This work is concerned with the development of a numerical method capable of simulating viscoelastic free surface flow of an Oldroyd-B fluid. The basic equations governing the flow of an Oldroyd-B fluid are considered. A novel formulation is developed for the computation of the non-Newtonian extra-stress components on rigid boundaries. The full free surface stress conditions are employed. The resulting governing equations are solved by a finite difference method on a staggered grid, influenced by the ideas of the marker-and-cell (MAC) method. Numerical results demonstrating the capabilities of this new technique are presented for a number of problems involving unsteady free surface flows.