An underwater terrain navigation method based on Bayesian estimation is proposed for autonomous underwater vehicle (AUV), according to the depths measured by multi-beam echo sounder (MBES). For the shortage of false peak increasing intensely at low characteristic area of this method, the Fisher criterion is introduced. This method effectively reduces the false peaks, enhances the discrimination of the flat area, and has good robustness for initial positioning error. The positioning result of simulation shows that the method can be an efficient and feasible tool for AUV navigation.