One of the more critical systems on a modern day naval combatant is the ship service electrical power system. It must reliably generate high quality electrical power for the control of the propulsion plant, sensors, weapons systems, etc. Therefore, multiple generating units having excellent dynamic response to load changes are required. In addition, since the electrical power system can currently consume approximately 20-25% of the available fuel required by a combatant, the need for efficient engines for powering electrical generators is also of concern. This paper discusses the work being done at David Taylor Naval Ship Research and Development Center (DTNSRDC - Code 2721) in the area of fuel efficient gas turbine engines for future ship service electrical generator sets.