This paper presents experimental and theoretical studies on the dynamic effect on the propeller loading due to ventilation by using a simulation model that generates a time domain solution for propeller forces in varying operational conditions. For ventilation modeling, the simulation model applies a formula based on the idea that the change in lift coefficient due to ventilation computes the change in the thrust coefficient. It is discussed how dynamic effects, like hysteresis effects and blade frequency dynamics, can be included in the simulation model. Simulation model validation was completed by comparison with CFD (computational fluid dynamics) calculations and model experiments. Experiments were performed for static and dynamic (heave motion) conditions in the large towing tank at the SINTEF Ocean in Trondheim and in the Marine Cybernetics Laboratories at NTNU (Norwegian University of Science and Technology). The main focus of this paper is to explain and validate the prediction model for thrust loss due to ventilation and out of water effects in static and dynamic heave conditions.