A two-dimensional unsteady inviscid flow solver has been developed for the simulation of complex geometric configurations on adaptive Cartesian meshes. Embedded condition was used for boundary condition and a predictor-corrector explicit time marching scheme was used for time-accurate numerical simulation. The Cartesian mesh generator, which was previously developed for steady problem, was used grid generation for unsteady flow. The solver was based on ALE formulation for body motion. For diminishing the effects of cut-cells, the cell merging method was used. Using cell merging method, it was eliminated the CFL constraints. The conservation problem, which is caused cell-type variation around region swept by solid boundary, was also solved using cell merging method. The results are presented for 2D circular cylinder and missile launching problem.