The authors have developed a calculating method of propeller shaft alignment by the finite element method. The propeller shaft is divided into finite elements which can be treated as uniform section bars. For each element, the nodal point equation is derived from the stiffness matrix, the external force vector and the section force vector. Then the overall nodal point equation is derived from the element nodal point equation. The deflection, offset, bending moment and shearing force of each nodal point are calculated from the overall nodal point equation by the digital computer. Reactions and deflections of supporting points of straight shaft are calculated and also the reaction influence number is derived. With the reaction influence number the optimum alignment condition that satisfies all conditions is calculated by the simplex method of linear programming. All results of calculation are compared with those of Det norske Veritas, which has developed a computor program based on the three-moment theorem of the strength of materials. The authors finite element method has shown good results and will be used effectively to design the propeller shaft alignment.