In this paper, decoupled controller design for Autonomous Underwater Vehicle(AUV) and its simulated performance test results and Hardware In the Loop Simulation(HILS) results are presented. Control system design is done using the PD control scheme. Stability analysis and step response of closed loop system under uncertain parameter condition are also presented. The results of full coupled nonlinear model simulation show the well applicability of the designed controller. From the results of HILS, we can verify performance of real time processing and implemented hardware for AUV.