This study is on the development of an engine monitoring system which can be applied not only for mid-size vessels but also small vessels less than 20 gross tonnage. Monitoring system consists of a set LMU(Local Monitoring Unit) that collect data from local machinery, a host computer that controls LMU and a stable communication system which adopts CSMA/CD protocol. The LMU is composed of 80C196KC microprocessor, which consists of CPU, digital input/output, analog input/output and communication module. Communication system between the host computer(compatible IBM PC) and LMUs is the multidrop configuration using RS-485 method and confirmed high performance communication by the aid of polling method as well as carrier sense multiple access with collision detection(CSMA/CD) protocol.