Survivability improvement method for naval ship design has been continually developed. In order to design naval ships considering survivability, it is demanded that designers should establish reasonable damage conditions by air explosion. Explosion may induce local damage as well as global collapse to the ship. Therefore possible damage conditions should be realistically estimated in the design stage. In this study the authors used ALE technique, one of the structure-fluid interaction techniques, to simulate air explosion and investigated survival capability of damaged naval ships. Lagrangian-Eulerian coupling algorithm, equation of the state for explosive and air, and simple calculation method for explosive loading were also reviewed. It is shown that air explosion analysis using ALE technique can evaluate structural damage after being attacked. This procedure can be applied to the real structural design quantitatively by calculating surviving time and probability.