An Euler code has been developed for the analysis of a wing-mounted propfan configuration. Surface-fitted grids are used to represent the wing, fuselage, and nacelle geometry. The propeller is simulated by an actuator disk along a computational plane. A grid embedding technique is employed to capture detailed flow field resolution in the vicinity of the engine exhaust plume. Results of a NASA turboprop configuration are compared with test data. Specific issues on grid embedding and methods of resolving them are discussed.