This paper presents a hybrid approach to multiple fluid simulation that can handle miscible and immiscible fluids, simultaneously. We combine distance functions and volume fractions to capture not only the discontinuous interface between immiscible fluids but also the smooth transition between miscible fluids. Our approach consists of four steps: velocity field computation, volume fraction advection, miscible fluid diffusion, and visualization. By providing a combining scheme between volume fractions and level set functions, we are able to take advantages of both representation schemes of fluids. From the system point of view, our work is the first approach to Eulerian grid-based multiple fluid simulation including both miscible and immiscible fluids. From the technical point of view, our approach addresses the issues arising from variable density and viscosity together with material diffusion. We show that the effectiveness of our approach to handle multiple miscible and immiscible fluids through experiments.