We present the smoothed-particle hydrodynamics simulation code, Bonsai-SPH, which is a continuation of our previously developed gravity-only hierarchical $N$-body code (called Bonsai). The code is optimized for Graphics Processing Unit (GPU) accelerators which enables researchers to take advantage of these powerful computational resources. Bonsa-SPH produces simulation results comparable with state-of-the-art, CPU based, codes, but using an order of magnitude less computation time. The code is freely available online and the details are described in this work.