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Mathematical modeling and real-time system simulation for liquefied natural gas (LNG) ship steam turbine propulsion system are significant not only to development of LNG engine room simulator, system optimized control, fault diagnosis but also to increasing the economics, safety, reliability. Through the analysis of mechanism, using the method of modular modeling and lumped parameters modeling, a real-time modularized mathematical model for LNG ship steam turbine propulsion system has been developed based on the principle of fluid dynamics, heat transfer and thermo-dynamics. The steam turbine propulsion system of LNG ship built by Shanghai HuDong-Zhonghua shipyard has been taken as an example to system simulation purpose. Simulation studies were conducted and the results show that the built model has satisfied static precision and dynamic characteristics and the accuracy meets the simulation requirements. The model has been utilized in LNG Ship engine room simulation system.