The simulation method of free-surface flow around hull and rudder with propeller effects on the basis of RANS equations solver has been developed. The problem of complex geometry is solved by using multi-block grid technique. Propeller effects are included in RANS equations by the body forces equivalent to mean forces acting on propeller blades calculated by UQCM on the basis of the lifting surface theory. The present method is applied to computation of free-surface viscous flow around KCS container ship for without/with propeller condition and it is confirmed that it can accurately predict flow fields of stern region through comparison with the experimental results. Moreover, it is applied to calculate the flow around modern full ship hull and rudder without/with propeller. Consequently, its resistance and self -propulsion factors are accurately estimated. And, the difference of wake fraction due to that of propeller diameter is discussed through the analysis of the computed flow fields.