The flow characteristics around a horn-type rudder behind an operating propeller of a high-speed large container carrier are studied through a numerical method in fully wetted and cavitating flow conditions. The computations are carried out in a small scale ratio of 10.00(gap space=5mm) to consider the gap effects. The Reynolds averaged Navier-Stokes equation for a mixed fluid and vapor transport equation applying cavitation model are solved. The axisymmetry body-force distribution technique is utilized to simulate the flow behind an operating propeller. The gap flow, the three-dimensional flow separation, and the cavitation are the flow characteristics of a horn-type rudder. The pattern of three-dimensional flow separation is analyzed utilizing a topological rule. The various cavity positions predicted by CFD were shown to be very similar to rudder erosion positions in real ship rudder. The effect of a preventing cavitation device, a horizontal guide plate, is also investigated.