In the present paper, An emphasis is laid upon effects of stern bulb on hydrodynamic property and manoeuvring performance. We carried out captive model tests in circulating water channel with two ship models of which the frame lines of aft bodies are different. such as normal stern form and stern form with bulb, but of which the other parts are exactly same. The tests conducted consist of hull resistance test, effective thrust measurement, oblique tow test, and measurements of factors related to rudder force. From the results of model tests, we discussed effects of stern bulb on hull forces and on hull-propeller-rudder interactions, comparing with normal stern form. Furthermore, we also discussed effects of stern bulb on course stability. turning ability. spiral characteristics and zig-zag manoeuvre by computer simulation. As a result, it is clarified that the adoption of stern bulb makes course stability the worse and turning ability the better. The difference of the hydrodynamic derivatives of naked hull between two ship forms cause the worse course stability of the ship with stern bulb. The differences of the effective inflow velocity to rudder and hull forces induced by steered rudder cause the better turning ability of the ship with stern bulb.