Simulation of cauterization and irrigation forms an important part of a virtual laparoscopic trainer. Typically, they are carried out to stop the intragastric bleeding due to an accidental cut by the surgeon. In this paper, we present a method to simulate these special visual effects in an integrated fashion in real-time. We have simulated cauterization and irrigation using a particle-based system. A physics-based model is used to simulate accumulation and removal of fluids. The integrated special effects were implemented and tested in a prototype environment.