The aim of this paper is to analyze the steady performance of POD-type waterjet system by panel method. A surface panel method is applied to the present analysis. To analyze the compound propulsor. analysis program has been developed based on a perturbation potential method. The developed code has been validated by comparing the experimental data of shrouded propeller. The validated code has been applied to the POD-type waterjet system which can be used for the propulsion of amphibious vehicle. The computed results have been compared with experimental results. which shows a good agreement between them.