In this study, the effects of ultrasonic on melt pool dynamic, microstructure, and properties of underwater wet flux-cored arc welding (FCAW) joints were investigated. Ultrasonic vibration enhanced melt flow and weld pool oscillation. Grain fragmentation caused by cavitation changed microstructure morphology and decreased microstructure size. The proportion of polygonal ferrite (PF) reduced or even disappeared. The width of grain boundary ferrite (GBF) decreased from 34 to 10 μm, and the hardness increased from 204 to 276 HV. The tensile strength of the joint increased from 545 to 610 MPa, and the impact toughness increased from 65 to 71 J/mm2 due to the microstructure refinement at the optimum ultrasonic power.