Based on aquatic optics Monte Carlo hyperspectral simulation, the interactions between spectral characteristics of chlorophyll a, total suspended matter (TSM) and colored dissolved organic matter (CDOM) were discussed. The result shows that the nonlinear and spectrally varying interactions between different water components are extremely highly asymmetric. The existing of chlorophyll a and CDOM has little effects on the characteristic wavebands selection and information retrieval of TSM, while the effects of TSM on chlorophyll a are obvious. With the stepwise additions of TSM, the response of chlorophyll a to its concentration becomes weak. When the concentration of TSM increases to a certain degree, the spectral response of chlorophyll a concentration will disappear. Even at the sensitivity waveband of chlorophyll a such as 670 nm, when the TSM is in high concentration, the spectral reflectance will not change with chlorophyll a concentration, which lead to difficulty to extract the chlorophyll a concentration in turbid water dominated by suspended matter. The existing of CDOM causes the blue and green band ratio algorithm to fail when the chlorophyll a is in middle to high concentration. The spectral effects on CDOM of the water body dominated by TSM are more obvious than that dominated by chlorophyll a. There are strong inhibition effects of TSM on the CDOM spectral properties in the short bands. The research results can provide theoretical basis for characteristic waveband selection, the application scope of water component concentration inversion algorithm and the waveband setting for case 2 water remote sensing.