Using diamond saw wire could cut the seabed oil compound pipes. There are different advancing velocities according to the material of pipes; it makes the cutting and advancing velocities under the condition of harmony at the time of cutting the compound pipes underwater. First of all, the experiment system of diamond saw wire was set up by test cistern, equipment of diamond wire saw underwater, hydraulic pressure system, measuring and controlling system, diamond saw wire and single layer seabed oil compound pipes so on. Next, the cutting parameters, which include pipe sizing, working pressure, tensioning force of diamond saw wire, cutting velocity and advancing velocity were initialized and the first experimentation was done. Then, after adjusting the cutting parameters according to the analysis of cutting test, the next cutting experimentation underwater was done. In the end, the wearing capacity of diamond beads was measured and got the optimal advancing velocity which can minish the wearing capacity and prolong the cutting time of diamond beads. So, using these cutting parameters to cut the seabed oil compound pipes validated the feasibility of engineering application.