Clean and renewable energy technologies using ocean energy give us non-polluting alternatives to fossil-fueled power plants as a countermeasure against global warming and growing demand for electrical energy. Among the ocean energy resources, wave power takes a growing interest because of its enormous amount of potential energy in the world. Therefore, various types of wave power systems to capture the energy of ocean waves have been developed. However, a suitable turbine type is not yet normalized because of relatively low efficiency of the turbine systems. The purpose of this study is to investigate the performance of a newly developed direct drive hydro turbine (DDT), which will be built in a caisson for a wave power plant. Experiment and CFD analysis are conducted to clarify the turbine performance and internal flow characteristics. The results show that the DDT obtains fairly good turbine efficiency in cases with and without wave conditions. Most of the output power is generated at the runner passage of Stage 2. Relatively larger amount of the decreased tangential velocity at Stage 2 produces more angular momentum than that at Stage 1 and thus, the larger angular momentum at the Stage 2 makes a greater contribution to the generation of total output power in comparison with that at Stage 1. Large vortex existing in the upper-left region of the runner passage forms a large recirculation region in the runner passage, and the recirculating flow consumes the output power at Region 2.