ABSTRACT We introduce the Stars and MUltiphase Gas in GaLaxiEs – SMUGGLE model, an explicit and comprehensive stellar feedback model for the moving-mesh code arepo. This novel sub-resolution model resolves the multiphase gas structure of the interstellar medium and self-consistently generates gaseous outflows. The model implements crucial aspects of stellar feedback including photoionization, radiation pressure, energy, and momentum injection from stellar winds and from supernovae. We explore this model in high-resolution isolated simulations of Milky Way like disc galaxies. Stellar feedback regulates star formation to the observed level and naturally captures the establishment of a Kennicutt–Schmidt relation. This result is achieved independent of the numerical mass and spatial resolution of the simulations. Gaseous outflows are generated with average mass loading factors of the order of unity. Strong outflow activity is correlated with peaks in the star formation history of the galaxy with evidence that most of the ejected gas eventually rains down on to the disc in a galactic fountain flow that sustains late-time star formation. Finally, the interstellar gas in the galaxy shows a distinct multiphase distribution with a coexistence of cold, warm, and hot phases.