Small Modular Reactors (SMRs) offer transformative potential for maritime propulsion by providing significant benefits such as reduced emissions, enhanced fuel efficiency, and greater operational autonomy. However, their integration into the maritime sector presents complex regulatory challenges due to the convergence of nuclear and maritime laws. A unified, harmonized regulatory framework is essential to ensure safety, radioactive waste management, and accident prevention. While initiatives led by the International Atomic Energy Agency (IAEA) and International Maritime Organization (IMO) are progressing, key gaps remain, particularly regarding maritime-specific risk assessments, emergency response protocols, and cross-border regulatory harmonization. Enhanced collaboration between regulatory bodies, pilot projects, and transparent engagement with stakeholders will be critical to refining safety protocols and accelerating regulatory alignment. Public acceptance remains a vital factor, requiring rigorous environmental impact assessments (EIAs) and transparent communication to build trust and align SMR-powered vessels with global sustainability objectives. While challenges persist, they also present opportunities for innovation and international cooperation. By addressing these regulatory and public acceptance challenges through coordinated efforts and policies, SMR propulsion can become a cornerstone of a more sustainable, efficient, and technologically advanced maritime sector. Successful deployment will position SMRs as a key component of the global energy transition, driving progress toward low-carbon shipping and a greener maritime industry.