The dynamic motion of tethered undersea kites (TUSK) is studied using numerical simulations. TUSK systems consist of a rigid winged-shaped kite moving in an ocean current. The kite is connected by tethers to a platform on the ocean surface or anchored to the seabed. Hydrodynamic forces generated by the kite are transmitted through the tethers to a generator on the platform to produce electricity. TUSK systems are being considered as an alternative to marine turbines since the kite can move at a high-speed, thereby increasing power production compared to conventional marine turbines. The two-dimensional Navier–Stokes equations are solved on a regular structured grid to resolve the ocean current flow, and a fictitious domain-immersed boundary method is used for the rigid kite. A projection method along with open multiprocessing (OpenMP) is employed to solve the flow equations. The reel-out and reel-in velocities of the two tethers are adjusted to control the kite angle of attack and the resultant hydrodynamic forces. A baseline simulation, where a high net power output was achieved during successive kite power and retraction phases, is examined in detail. The effects of different key design parameters in TUSK systems, such as the ratio of tether to current velocity, kite weight, current velocity, and the tether to kite chord length ratio, are then further studied. System power output, vorticity flow fields, tether tensions, and hydrodynamic coefficients for the kite are determined. The power output results are shown to be in good agreement with the established theoretical results for a kite moving in two dimensions.