This study is to investigate the aerodynamic effects of the Rotor-Fuselage Interactions in forward flight, and is conducted by using an improved time-marching free-wake panel method. To resolve the instability caused by the close proximity of the wake to the blade surface, the field velocity approach is added to the prior unsteady panel code. This modified method is applied to the ROBIN(ROtor Body Interaction) problem, which had been conducted experimentally in NASA. The calculated results, pressure distribution on fuselage surface and induced inflow ratio without and with the rotor, are compared with the experimental results. The developed code shows not only very accurate prediction of the aerodynamic characteristics for the rotor-fuselage interaction problem but also the rotor wake development.