A theoretical study on the pressure fluctuation induced by a propeller was carried out in this study. The main objective of this study is to analyze the source mechanism of the pressure fluctuation induced by propeller sheet cavitation. To analyze the pressure fluctuation induced by propeller sheet cavitation, modern acoustic theory was applied. Governing equation of pressure fluctuation induced by sheet cavitation was derived using Ffowcs Williams proposed time domain acoustic approaches. Several factors affecting pressure fluctuation were analyzed based on the derived governing equation. Pressure fluctuation result was represented by combined results of the far field term and near field term. Finally, the physical mechanism of pressure fluctuation at the blade rate frequency was analyzed using numerically generated cavitation volume variation.