In the present work, design procedure and computer simulation of an AUV are documented briefly. The design procedure containing the design of propulsion system and CFD simulation of hydrodynamics behavior of the hull leads to achieve an optimum mechanical performance of AUV system. After designing, a comprehensive one dimensional model including motor, propeller, and AUV hull behavior simulates the whole dynamics of AUV system. In this design, to select the optimum AUV hull, several noses and tails are examined by CFD tools and the brushless motor is selected based on the first order model of DC electrical motor. By calculating thrust and velocity in functional point, OpenProp as a tool to select the optimum propeller is applied and the characteristics of appropriate propeller are determined. Finally, a computer program is developed to simulate the interaction between different components of AUV. The simulation leads to determine the initial acceleration, final velocity, and angular velocity of electrical motor and propeller. Results show the final AUV performance point is in the maximum efficiency regions of DC electrical motor and propeller.