The depth and heading control of an autonomous underwater vehicle (AUV) are considered to follow the predetermined depth and heading angle. The proposed control algorithm was based on a sliding mode control, using estimated hydrodynamic coefficients. The hydrodynamic coefficients were estimated employing conventional nonlinear observer techniques, such as sliding mode observer and extended Kalman filter. Using the estimated coefficients, a sliding mode controller was constructed for a combined diving and steering maneuver. The simulated results of the proposed control system were compared with those of a control system that employed true coefficients. This paper demonstrated the proposed control system, and discusses the mechanisms that make the system stable and accurately follow the desired depth and heading angle in the presence of parameter uncertainty.