The surface-to-surface Dhanush was test fired from INS Subhadra in the Bay of Bengal, said sources.
It is a naval variant of India's indigenously-developed Prithvi missile.
Defence Research and Development Organisation (DRDO) sources said the launch is successful as the missile reached the designated target.
Sources said Dhanush missile is capable of carrying conventional as well as nuclear payload of 500 kg and can hit both land and sea-based targets under 350 km range. It has already been inducted in the armed forces.(IANS)