The study presents a numerical investigation about the hydrodynamic characteristics of a transom mounted interceptor on the Oliver Hazard Perry class frigate (FFG-7), in order to assess the potential of propulsion power reduction in a wide range of speeds. This study is aimed to design a stern interceptor with optimal efficiency not only at top speed, but also cruising/transfer speeds, by a simple regulation of its variable geometrical characteristics (from a construction and operational standpoint). A high fidelity numerical model is developed in the open source CFD suite OpenFOAM for the prediction of the longitudinal dynamic equilibrium at speed and the total resistance characteristics of the bare hull. The Reynolds Averaged Navier-Stokes Equations are solved using interDyMFoam, a multiphase volume of fluid solver which allows for a dynamic mesh. The numerical model is validated using the results of the experimental model tests conducted on a 1/80th scale model at the United States Naval Academy Hydromechanics Laboratory (NAHL). The validated numerical model is used to predict the hydrodynamic characteristics of the transom mounted interceptor at different interceptor settings and speeds. The results show that the interceptor reduces the amount of resistance, the running trim, and the sinkage of the ship at high speeds. For a speed of 0.392 Froude number (Fr), a drag reduction of 3.76% was observed, as well as a significant reduction in trim. / Master of Science / The drag acting on the hull is an important component that has to be considered during the process of designing the ship. An interceptor is a device that has been developed to improve the performance of hulls by reducing the drag. This research studies the influence of the interceptor on the resistance and motion of the ship across a range of speeds. The geometrical characteristics of the interceptor are varied in order to identify the geometry that would provide optimal performance across the speed range tested. This study is conducted using the Computational Fluid Dynamics (CFD) software OpenFOAM as well as model tests that were conducted on a 1/80th scale model.