The invention discloses a diagnosis system and method for the vessel condition. The diagnosis system comprises a vessel-end data monitoring system and a shore-end cloud diagnosis system, wherein the vessel-end data monitoring system comprises an engine room data collection base station, an industrial personal computer, a vessel-end server and a vessel-end multi-information fusion and analysis module; the shore-end cloud diagnosis system comprises a vessel data server cluster, a data algorithm server and a user client. The processing of data is divided into two levels, wherein in the first level, real-time data are analyzed conventionally, the calculated amount is small, and the real-time performance is high; in the second level, vessel-end data are sent to the shore-end cloud diagnosis system through the vessel and shore communication, complex analysis and condition trend forecast are carried out, the analysis is more accurate, the forecast function is achieved, but the real-time performance is poor. Through the double-level data analysis mode, the requirement for real time performance can be met, and complex and deep operation of mass data is achieved. The calculation result can be used for guiding seamen to operate vessels.