The underwater acoustic wave propagation problem is an important issue in ocean engineering field. The classical finite element approach with edge-based smoothed gradient smoothing technique is incorporated into the novel ρ∞-Bathe implicit direct time integration scheme in this paper for solving underwater transient acoustic wave propagation problems. This edge-based smoothed FEM (ES-FEM) and ρ∞-Bathe method are employed to perform the space and time domain discretization, respectively. Due to the appropriate softening effects from the ES-FEM, the space discretization errors can be markedly reduced. Meanwhile, the possible numerical error related to the temporal discretization also can be significantly suppressed by the novel ρ∞-Bathe method which possesses the controllable numerical damping effects. Through detailed analysis of the total dispersion error, we find that the numerical results from the proposed scheme can converge monotonically to the exact solutions when employing the decreasing temporal discretization intervals and the possible numerical anisotropy effects are also effectively suppressed. These excellent numerical performance clearly distinguish the present method from the conventional approaches and make it to be particularly suitable for complicated acoustic wave propagation analysis. Finally, various typical numerical experiments are performed to illustrate the capacities of the proposed scheme in tackling underwater transient acoustic wave propagation problems.