This study introduces a hybrid control structure called Improved Interfered Fluid Dynamic System Nonlinear Model Predictive Control (IIFDS-NMPC) for the path planning and trajectory tracking of autonomous underwater vehicles (AUVs). The system consists of two layers; the upper layer utilizes the Improved Interfered Fluid Dynamic System (IIFDS) for path planning, while the lower layer employs Nonlinear Model Predictive Control (NMPC) for trajectory tracking. Extensive simulation experiments are conducted to determine optimal parameters for both static and dynamic obstacle scenarios. Additionally, real-world testing is performed using the BlueRov2 platform, incorporating multiple dynamic and static obstacles. The proposed approach achieves real-time control at a frequency of 100 Hz and exhibits impressive path tracking accuracy, with a root mean square (RMS) of 0.02 m. This research provides a valuable framework for navigation and control in practical applications.