An anti-ship missile, Dhanush is a variant of Prithvi III developed by the Indian Navy.
'Dhanush' ballistic missile has a strike range of 350 kms.
The missile was test-fired from the ship positioned near Paradip in the Bay of Bengal at around 10.52 am, officials said.
'Dhanush' missile is capable of carrying a payload of 500 kg and hitting both land and sea-based targets, the sources said, adding that its trial was carried out by the Strategic Force Command (SFC) of the defence forces.
Last month, India had tested the nuclear-capable Agni-V missile at Abdul Kalam island off Odisha coast.
After four successful developmental trials, it was the first user associate test, Defense officials had said.
The surface-to-surface Agni-V missile has a range of around 5,000 kilometres and is capable of carrying a nuclear warhead of 1.5 tonnes.
The single-stage, liquid-propelled 'Dhanush', has already been inducted into the defence services. It is one of the five missiles developed by the Defence Research and Development Organisation (DRDO) under the Integrated Guided Missile Development Programme (IGMDP).
The last trial was successfully tested on April 9, 2015.