— We propose a novel modular underwater robot which can self-reconfigure by stacking and unstacking its component modules. Applications for this robot include underwater monitoring, exploration, and surveillance. Our current prototype is a single module which contains several subsystems that later will be segregated into different modules. This robot functions as a testbed for the subsystems which are needed in the modular implementation. We describe the module design and discuss the propulsion, docking, and optical ranging subsystems in detail. Experimental results demonstrate depth control, linear motion, target module detection, and docking capabilities.