Recently, integrated electric propulsion system has been vigorously adopted into naval vessels. To enhance effectiveness and efficiency of power management in these propulsion systems, this paper investigates necessity of energy storage devices and their operation strategies. By introducing the energy storage devices, engine can operate at higher efficiency point and accordingly costs for fuel and maintenance are significantly reduced. In addition, transient performance can also be improved with support of the devices and it leads to stable operation of shipboard power bus. To validate the proposal of this paper, computer simulation has been conducted with real load data of existing electric propulsion system.