Abstract: Hydraulic transients are known as water hammer, which is defined as a sudden increase in pipe pressure and the pressure wave traveling along the pipe at sonic velocities. With the pressure wave, dynamic stresses are created in the pipe wall, which contribute to pipe failures. ALE analysis method was used to simulate three-dimensional fluid-structure interaction (FSI) during the water hammer event, and compared with the one-dimensional results. Based on the above, the three-dimensional dynamic stresses that result from pipe wall vibration at a distance from the end of a pipe was illustrated. When the maximum stress occurred, the pressure wave has passed away. The hoop stress is dominant in all dynamic stresses.