The initial widespread electrification of marine vessels primarily used alternating current (AC)-based systems as they were prevalent in the electrical distribution infrastructure for land-based systems. At present, there are marine vessels that operate based on a hybrid diesel-electric system, in which the on-board diesel engines generate AC power to a common AC bus, which in turn supplies power to the electrical propulsion drives and other service loads. Recently, there has been an active interest in a transition to direct current(DC)-based electrical distribution system with diesel-electric hybrid propulsion systems for marine vessels due to potential improvements in electrical performance and fuel consumption. This paper evaluates the improvement in the move to DC-based distribution system for marine vessels in terms of electrical performance and fuel efficiency. An overview of a typical AC electrical system currently in use is provided, and modifications of the system to a DC-based system is presented. The power factor, total harmonic distortion, and voltage regulation are discussed. Both symmetrical and asymmetrical generator scheduling are examined and the potential fuel savings for an example diving support vessel is presented. A discussion on the recommendations to shift towards DC-based systems is then provided based on the findings of this paper.