The article presents ARTMAP and Fuzzy BK-Product approach underwater obstacle avoidance for the Autonomous underwater Vehicles (AUV). The AUV moves an unstructured area of underwater and could be met with obstacles in its way. The AUVs are equipped with complex sensorial systems like camera, aquatic sonar system, and transducers. A Neural integrated Fuzzy BK-Product controller, which integrates Fuzzy logic representation of the human thinking procedure with the learning capabilities of neural-networks (ARTMAP), is developed for obstacle avoidance in the case of unstructured areas. In this paper, ARTMAP-Fuzzy BK-Product controller architecture comprises of two distinct elements, are 1) Fuzzy Logic Membership Function and 2) Feed-Forward ART component. Feed-Forward ART component is used to understanding the unstructured underwater environment and Fuzzy BK-Product interpolates the Fuzzy rule set and after the defuzzyfication, the output is used to take the decision for safety direction to go for avoiding the obstacle collision with the AUV. An on-line reinforcement learning method is introduced which adapts the performance of the fuzzy units continuously to any changes in the environment and make decision for the optimal path from source to destination.