This paper deals with computational fluid dynamics simulation of ship in bare hull condition and with the propeller working to study hull propeller interaction. Modelling includes ship and propeller in ANSYS ICEM. Steady State simulation is carried out with STAR-CCM+ CFD solver which is based on Finite Volume Method (FVM). Computational Fluid Dynamics (CFD) is a branch of Fluid Dynamics which provides a cost-effective means of simulating real flows, heat transfer, and other related physical processes by solving mathematical model of the Reynolds-Averaged Navier-Stokes (RANS) equations. This numerical approach involves discretizing the spatial domain into finite control volumes using a mesh. The governing equations of mass and momentum are integrated over the control volume, such that the relevant quantities are conserved. Turbulence flow is assumed in the simulation. Numerical results obtained from analysis are compared with experimental results. At each radial position a local inflow velocity to blade is determined from the average velocity on surface section; the velocity distribution gives non-uniform wake conditions in the vicinity of the propeller. Two types of Manoeuvring tests are performed, turning circle test to determine turning ability and zigzag Manoeuvre to determine control characteristics under rudder action of vessel. © 2014: The Royal Institution of Naval Architects and IIT Madras.