We investigate the low-energy dynamics of the BPS solitons of the noncommutative C P-1 model in 2+1 dimensions using the moduli space metric of the BPS solitons. We show that the dynamics of a single soliton coincides with that in the commutative model. We find that the singularity in the two-soliton moduli space, which exists in the commutative C P-1 model. disappears in the noncommutative model. We also show that the two-soliton metric has the smooth commutative limit. (C) 2002 Elsevier Science B.V. All rights reserved.