An umbilical cord retractor assembly and method is provided for retracting an umbilical cord from a torpedo or other vehicle prior to launching the vehicle. A guide arm is utilized to guide a slide member along a predetermined path within the guide arm. The slide is connected through a link to the umbilical cord such that the umbilical cord is pulled to a predetermined position within the launch tube out of the way of the fins, shroud, and propeller of the vehicle. Prior to activation of the retractor assembly, the slide is affixed in position within the guide arm by a lock. A spring under tension applies a force to the slide. A release cord pulls a pin from the slide to release the cord at a desired time, thereby retracting the umbilical cord to the predetermined position within the launch tube.