This paper deals with the pressure fluctuation induced by propeller cavitation. The main objective of this study is to analyze the source mechanism of the pressure fluctuation induced by propeller cavitation. To analyze the source mechanism of the pressure fluctuation, modem acoustic theory is applied. The governing equation of the pressure fluctuation induced by propeller is derived using Ffowcs Williams-Hawkings proposed time domain acoustic method. The physical mechanism of pressure fluctuation at the blade rate frequency is analyzed using numerically generated cavitation volume variation. Finally the characteristics of the pressure fluctuation induced by a propeller are presented.