In this paper, we consider a predator-prey system with distributed time delay where the predator dynamics is logistic with the carrying capacity proportional to prey population. In  and , we studied the impact of the discrete time delay on the stability of the model, however in this paper, we investigate the effect of the distributed delay for the same model. By choosing the delay time tau as a bifurcation parameter, we show that Hopf bifurcation can occur as the delay time tau passes some critical values. Using normal form theory and central manifold argument, we establish the direction and the stability of Hopf bifurcation. Some numerical simulations for justifying the theoretical analysis are also presented.