Underwater radiated noises from marine vehicles are mostly due to the propulsion systems. Recently, the propeller noise problems are becoming crucial issues in terms of habitability of passenger ships. Especially in military area, propeller noise is directly related to the survivability of submarines and warships, and thus propeller noise analysis and reductions are very important. Generally, propeller noise can be classified into non-cavitating noise and cavitating noise which is dominant. In this paper the methodology of propeller noise analysis is announced and new approach to consider scattering effect is proposed. Unsteady blade surface pressure and sheet cavity volume analyzed with potential based panel method are used as noise source.