In the present study, stern form optimization has been carried out using computational fluid dynamics (CFD) techniques. The viscous pressure drag has been minimized to optimize stern shape. Parametric modification function has been used to modify the shape of the hull. By the use of the parametric modification function and algebraic scheme to grid manipulation, the initial ship geometry was easily deformed according to change of design parameters. For purpose of illustration, KRISO 319K VLCC (KVLCC) is chosen for example ship to demonstrate stern form optimization. The numerical results indicate that the optimized hull yields a reduction in viscous resistance.