This study investigates the sedimentation of circular particle in the viscous incompressible fluid within two-dimensional (2-D) channel. For the fluid–structure interaction problem, a two-dimensional computational model is developed by employing an immersed boundary method, discretizing and solving non-dimensionalized Navier–Stokes equations on a finite volume staggered grid system. The forces and velocities are interpolated using momentum forcing function. Fractional-step method is implemented to solve the simulation to calculate intermediate pressure and velocities. Lagrangian parameters calculated from immersed boundary method are used to track the position by using Newton’s motion equations. The validation of the code is done by comparing settling velocity and time with existing research results. Later the simulations are carried out by offsetting the position of the particle in the transverse and the longitudinal direction. Further the effect of density ratio is studied. Various scenarios for settling velocity, settling time, and position of the particle are found and discussed in the paper.