In this paper, we theoretically and experimentally analyze the frequency-comb interferometry at 518 nm in the underwater environment, which we use to measure the underwater distance with high accuracy and precision. In the time domain, we analyze the principle of pulse cross correlation. The interferograms can be obtained in the vicinity of N∙lpp, where N is an integer and lpp is the pulse-to-pulse length. Due to the strong dispersion of water, the pulse can be broadened as the distance increases. The distance can be measured via the peak position of the interferograms. The experimental results show a difference within 100 μm at 8 m range, compared with the reference values. In the frequency domain, we analyze the principle of dispersive interferometry. The spectrograms can be observed near the location of N∙lpp, due to the low resolution of the optical spectrum analyzer. Because of the strong dispersion of water, the modulation frequency of the spectrogram is not constant. A balanced wavelength will exist with the widest fringe, at which the group optical path difference between the reference and measurement arm is equal to N∙lpp. The position of the widest fringe can be used to measure the distance. Compared with the reference values, the experimental results indicate a difference within 100 μm at 8 m range.