A propulsion arrangement for a marine vessel is disclosed. The propulsion arrangement comprises an engine (12, 14) for propelling the vessel and an electrical machine (26, 28) coupled to the engine. The electrical machine is arranged to supply onboard electrical power for the vessel. A control unit (44) controls the electrical machine such that the electrical machine is selectively operable as a generator or a motor. The control unit and the electrical machine are arranged such that the electrical machine when operating as a motor can supplement the power of the engine while the engine is in operation. In one embodiment, the control unit and the electrical machine are arranged to provide active damping of the engine torque.