Naval ship propulsion systems are designed to meet very demanding requirements of performance with criteria ranging from high energy density, high efficiency systems and low stealth signatures. With the high cost pressure on defence spending, navies are seeking to meet these objectives with low acquisition and life cycle costs with leanly manned crews for ships. In this scenario, while the complexity of the propulsion system design itself increases, the complexity extends to the domains of the propulsion control systems and human-machine interface. With the lean crew on-board, the complexity further extends to the areas of operation and maintenance of such systems on-board and thus crew training. This paper proposes a domain based integrated Model Based System Engineering (MBSE) to comprehensively address the areas of system design, control system design, operation and maintenance as well as training. The approach is based on development of mathematical model of the propulsion system is developed early during the concept development stage which evolves continuously during the various stages of design. The same framework is then used for dynamic analysis of the system towards development of the propulsion control system, and then integrating into condition based maintenance systems and crew training systems.