As the capacity of all-electric ships (AESs) increases dramatically, the sudden changes in the system load may lead to serious problems, such as voltage fluctuations of the ship power grid, increased fuel consumption, and environmental emissions. In order to reduce the effects of system load fluctuations on system efficiency, and to maintain the bus voltage, we propose a hybrid energy storage system (HESS) for use in AESs. The HESS consists of two elements: a battery for high energy density storage and a superconducting magnetic energy storage (SMES) for high power density storage. A dynamic droop control is used to control charge/discharge prioritization. Maneuvering and pulse loads are the main sources of the sudden changes in AESs. There are several types of pulse loads, including electric weapons. These types of loads need large amounts of energy and high electrical power, which makes the HESS a promising power source. Using Simulink/MATLAB, we built a model of the AES power grid integrated with an SMES/battery to show its effectiveness in improving the quality of the power grid.