This thesis describes the simulation of an electrical ship drive. The drive has been modelled in Matlab/Simulink programming environment. A source of power is provided by a DC voltage source (battery). The induction motor serves as the ship's power engine. Since this is an AC electric motor, the system also includes a DC/AC conversion circuit. A small passenger ship around 30 metres long was chosen as a vessel model. The dimensions of the ship and propeller are based on actual data. The torque curve of the induction motor depends on set frequency and voltage. This in turn determines the final speed of the ship and the corresponding propeller speed. The new equilibrium is achieved when the thrust created by the propeller is equal to the force of ship resistance and the driving torque is equal to the load (propeller) torque. Ship resistance is composed of frictional and residual resistance. The obtained thrust and load torque were calculated using the appropriate coefficients from the Wageningen B series. The motor shaft is connected to the propeller using a transmission mechanism. The mechanism reduces the higher engine speed to the slower propeller speed. It also increases the developed torque which has a positive impact on motor-ship dynamics.