The present work develops a method of evaluating thrust deduction and wake for different loads of the propeller using the concerted application of the theoretical tools and experimental techniques. It also shows the applicability of the new method to the design of optimum hull form. Firstly, the problem of hull-propeller interaction was analyzed in terms of inviscid as well as viscous components of the thrust deduction and wake. The wavemaking resistance of a hull and propeller were mathematically represented by sources on the hull surface and sink on the propeller plane, respectively. The strength of sink was determined by utilizing the radial distributions of propeller load and nominal wake. The resistance increment due to a propeller and the axial perturbation flow induced by the hull in the propeller plane were calculated. Especially, the inviscid component of the thrust deduction was calculated by subtraction the wavemaking resistance of a bare hull, the wavemaking resistance of a free-running propeller and the augmentation of propeller resistance due to hull action from the wavemaking resistance of the hull with a propeller. The viscous components of the thrust deduction and wake were estimated as functions of propeller load which were established by the propeller load varying test after deduction the calculated inviscid components. Secondly, an analysis method of powering performance was developed based on the potential theory and the propeller load varying test. The hybrid method estimates the thrust deduction, wake and propeller open-water efficiency for different propeller load. This method can be utilized in the analysis of powering performance for the propeller load variation such as the added resistance due to hull surface roughness, the added resistance due to wind, etc. Finally, the hybrid method was applied to the optimum design of hull form. A series of afterbody shapes was obtained by systematically varying the waterplane and section shapes of a parent afterbody without changing the principal dimensions, block coefficient and prismatic coefficient. From the comparison of the predicted results such as wavemaking resistance, thrust deduction, wake and delivered power, an optimum hull form was obtained. The delivered power of the optimized hull form was reduced by 5.7% which was confirmed by model tests. Also the predicted delivered power by the hybrid method shows fairly good agreement with the test result. It is therefore considered that the new analysis method of powering performance can be utilized as a practical tool for the design of optimum hull form as for the analysis of powering performance for the propeller load variation in the preliminary design stage.