A two-dimensional numerical Computational Fluid Dynamics (CFD) model is established on the basis of viscous CFD theory to investigate the motion response and power absorption performance of a bottom-hinged flap-type wave energy converter (WEC) under regular wave conditions. The convergence study of mesh size and time step is performed to ensure that wave height and motion response are sufficiently accurate. Wave height results reveal that the attenuation of wave height along the wave tank is less than 5% only if the suitable mesh size and time step are selected. The model proposed in this work is verified against published experimental and numerical models. The effects of mechanical damping, wave height, wave frequency, and water depth on the motion response, power generation, and energy conversion efficiency of the flap-type WEC are investigated. The selection of the appropriate mechanical damping of the WEC is crucial for the optimal extraction of wave power. The optimal mechanical damping can be readily predicted by using potential flow theory. It can then be verified by applying CFD numerical results. In addition, the motion response and the energy conversion efficiency of the WEC decrease as the incident wave height increases because the strengthened nonlinear effect of waves intensifies energy loss. Moreover, the energy conversion efficiency of the WEC decreases with increasing water depth and remains constant as the water depth reaches a critical value. Therefore, the selection of the optimal parameters during the design process is necessary to ensure that the WEC exhibits the maximum energy conversion efficiency.