Abstract: In developing and exploring extreme and harsh underwater environments, underwater robots can effectively replace humans to complete tasks. To meet the requirements of underwater flexible motion and comprehensive subsea operation, a novel octopus-inspired robot with eight soft limbs was designed and developed. This robot possesses the capabilities of underwater bipedal walking, multi-arm swimming, and grasping objects. To closely interact with the underwater seabed environment and minimize disturbance, the robot employs a cable-driven flexible arm for its walking in underwater floor through a bipedal walking mode. The multi-arm swimming offers a means of three-dimensional spatial movement, allowing the robot to swiftly explore and navigate over large areas, thereby enhancing its flexibility. Furthermore, the robot’s walking arm enables it to grasp and transport objects underwater, thereby enhancing its practicality in underwater environments. A simplified motion models and gait generation strategies were proposed for two modes of robot locomotion: swimming and walking, inspired by the movement characteristics of octopus-inspired multi-arm swimming and bipedal walking. Through experimental verification, the robot’s average speed of underwater bipedal walking reaches 7.26 cm/s, while the horizontal movement speed for multi-arm swimming is 8.6 cm/s.