Computational algorithms and code will be completed for calculating unsteady compressible 3-D viscous flow and retreating-blade dynamic stall on modern high-performance helicopter rotors. Present code features include the approximate factorization (AF) algorithm, a moving boundary fitted coordinate system, solution adaptive grid generation, K-omega turbulence model including rotational/curvature and unsteady effects, and will be adaptable to fully coupled aeroelasticity calculations. Phase II funding will produce a user-friendly and efficient code to model the dynamic stall problem with useful engineering accuracy. The capability to accurately calculate the unsteady flow and retreating-blade dynamic stall for realistic and innovative rotor blade shapes will contribute significantly to the ability to design high-performance helicopter rotor blades with reduced vibrations and greater maneuverability.