This paper proposes a method to enhance the quality of detecting and classifying surface vehicle propeller cavitation noise (VPCN) in shallow water by using the improved Detection Envelope Modulation On Noise (DEMON) algorithm in combination with the modified Convolution Neural Network (CNN). To improve the quality of the VPCN spectrogram signal, we apply the DEMON algorithm while analyzing the amplitude variation (AV) to detect the fundamental frequencies of the VPCN signal. To enhance the performance of the traditional CNN, we adapt the size of the sliding window in accordance with the properties of the VPCN spectrogram data, and also reconstruct the CNN layer structure. As for the results, the fundamental frequencies contented in the VPCN spectrogram data can be detected. The analytical results based on the measured data show that the accuracy of the VPCN classification obtained by the proposed method is above 90%, which is higher than those obtained by traditional methods.