A 25kW-class polymer electrolyte membrane (PEM) fuel cell system has been developed for the propulsion of a leisure boat. The fuel cell system was designed to satisfy various performance requirements, such as resistance to shock, stability under rolling and pitching oscillations, and durability under salinity condition, for its marine applications. Then, the major components including a 30kW-class PEM fuel cell stack, a DC-DC converter, a seawater cooling system, secondary battery packs, and balance of plants were developed for the fuel cell system. The PEM fuel cell stack employs a unique design structure called an anodic cascade-type stack design in which the anodic cells are divided into several blocks to maximize the fuel utilization without hydrogen recirculation devices. The performance evaluation results showed that the stack generated a maximum power of 31.0kW while maintaining a higher fuel utilization of 99.5% and an electrical efficiency of 56.1%. Combining the 30-kW stack with other components, the 25kW-class fuel cell system boat was fabricated for a leisure. As a result of testing, the fuel cell system reached an electrical efficiency of 48.0% at the maximum power of 25.6kW with stable operability. In the near future, two PEM fuel cell systems will be installed in a 20-m long leisure boat to supply electrical power up to 50kW for propelling the boat and for powering the auxiliary equipments.