An embedded Eulerian-Lagrangian formulation for the simulation of droplet dynamics within a polymer electrolyte fuel cell (PEFC) channel is presented. Air is modeled using an Eulerian formulation, whereas water is described with a Lagrangian framework. Using this framework, the gas-liquid interface can be accurately identified. The surface tension force is computed using the curvature defined by the boundary of the Lagrangian mesh. The method naturally accounts for material property changes across the interface and accurately represents the pressure discontinuity. A sessile drop in a horizontal surface, a sessile drop in an inclined plane and droplets in a PEFC channel are solved for as numerical examples and compared to experimental data. Numerical results are in excellent agreement with experimental data. Numerical results are also compared to results obtained with the semi-analytical model previously developed by the authors in order to discuss the limitations of the semi-analytical approach.