The 3-D unsteady viscous flow around an impulsively started rotating marine propeller is simulated using VIC(Vortex-In-Cell) method which is adequate to analyze the strong vortical flow around complicatedly-shaped body. The computational procedure is governed by the vorticity transport equation in Lagrangian form. In order to solve the equation, a regular grid which is independent to the shape of a body is introduced and each term of the equation is evaluated numerically on the grid by applying immersed boundary concept. In this paper, the overall algorithm including the formulation of governing equations and boundary conditions is described and some computational results are presented with discussing their physical validity.