We suggest the Hamiltonian approach for fluid mechanics based on the dynamics, formulated in terms of Lagrangian variables. The construction of the canonical variables of the fluid sheds a light of the origin of Clebsh variables, introduced in the previous century. The developed formalism permits to relate the circulation conservation (Tompson theorem) with the invariance of the theory with respect to special diffiomorphisms and establish also the new conservation laws. We discuss also the difference of the Eulerian and Lagrangian description, pointing out the incompleteness of the first. The constructed formalism is also applicable for ideal plasma. We conclude with several remarks on the quantization of the fluid.