Integrated Power System (IPS) makes more intensive use of power electronics and control than the traditional shipboard power system. This paper proposes to develop a high level Power and Energy Management System (PEMS) for a ship incorporated with IPS. PEMS will be integrated in the ship's automation system and will be responsible for the functions like — generator start/stop control, load dependent start/stop, blackout monitoring, load shedding, ship operation mode selection, start sequence program, etc. The PEMS is designed as a two-layer hierarchical architecture viz. system level layer and zonal level layer. A Power CONtrol module (PCON) is developed in both the two layers that will coordinate with other modules in the PEMS to realize its functions. Using PEMS, power and energy can be generated and delivered in an effective manner from generators to consumers. The benefits of this proposed approach are in minimizing the fuel consumption, improving the survivability, assuring the quality of service, etc.