A proposed hybrid electric marine vehicle was modeled in MATLAB Simulink and SimPowerSystems. Models for each of the individual propulsion components were developed and incorporated into a complete hybrid electric propulsion model. A vessel resistance model was created to support vessel performance and energy requirement evaluation. The model incorporates data based on the ship principal parameters and hull form. A rule-based supervisory controller for the proposed vessel was constructed. It is an amalgamation of control strategies of three vehicle architectures: electric vehicle, fuel cell electric vehicle, and hybrid electric vehicle (HEV). The complete model of the hybrid electric propulsion, control, and resistance subsystems was simulated on a dSPACE hardware-in-the-loop platform. For each simulation, the energy storage system (ESS) state of charge, station keeping/cruising mode, HEV assist, Beaufort number, current speed, true wind angle, and hotel load were specified. From the simulations, it was demonstrated that using a 30% ESS assisted HEV mode results in reduced emissions and fuel consumption as compared to a conventional vessel powertrain mode, supporting the case for plug-in hybrid electric vessels. A larger capacity ESS has the potential to reduce emissions and fuel consumption further, depending on ship usage. The basic rule-based supervisory controller proved functional for facilitating adequate power flows; however, further development is needed to improve efficiency and the mode selection process.