This paper describes the application of the coupled FE-BEM (finite element-boundary element method) for the numerical harmonic analysis of the linear dynamic behaviour of a magnetostrictive Terfenol-D rod in water. The magnetostrictive rod is three-dimensionally simulated to transduce applied electric current in a helical coil around the rod to mechanical displacement. The theoretical derivation of the magnetostrictive matrix equation is described in detail. The steady-state resonance response of the displacement is shown. In addition, the directivity pattern and the radiation impedance are also shown.