Manipulator is of vital importance to the remotely operated vehicle (ROV), especially when it works in the nuclear reactor pool. Two degrees of freedom (2-DOF) underwater manipulator is designed to the ROV, which is composed of control cabinet, buoyancy module, propellers, depth gauge, sonar, a monocular camera and other attitude sensors. The manipulator can be used to salvage small parts like bolts and nuts to accelerate the progress of the overhaul. It can move in the vertical direction alone through the control of the second joint, and can grab object using its unique designed gripper. A monocular vision based localization algorithm is applied to help the manipulator work independently and intelligently. Eventually, field experiment is conducted in the swimming pool to verify the effectiveness of the manipulator and the monocular vision based algorithm.