Purpose This study aims to provide a comprehensive review of electric tugboat deployment in maritime transportation, including an in-depth assessment of its advantages and disadvantages. Along with the identification of advantages and disadvantages of electric tugboat deployment, the present research also aims to provide managerial insights into the economic viability of different tugboat alternatives that can guide future investments in the following years.Design/methodology/approach A detailed literature review was conducted, aiming to gain broad insights into tugboat operations and focusing on different aspects, including tugboat accidents and safety issues, scheduling and berthing of tugboats, life cycle assessment of diesel tugboats and their alternatives, operations of electric and hybrid tugboats, environmental impacts and others. Moreover, a set of interviews was conducted with the leading experts in the electric tugboat industry, including DAMEN Shipyards and the Port of Auckland. Econometric analyses were performed as well to evaluate the financial viability and economic performance of electric tugboats and their alternatives (i.e. conventional tugboats and hybrid tugboats).Findings The advantages of electric tugboats encompass decreased emissions, reduced operating expenses, improved energy efficiency, lower noise levels and potential for digital transformation through automation and data analytics. However, high initial costs, infrastructure limitations, training requirements and restricted range need to be addressed. The electric tugboat alternative seems to be the best option for scenarios with low interest rate values as increasing interest values negatively impact the salvage value of electric tugboats. It is expected that for long-term planning, the electric and hybrid tugboat alternatives will become preferential since they have lower annual costs than conventional diesel tugboats.Practical implications The outcomes of this research provide managerial insights into the practical deployment of electric tugboats and point to future research needs, including battery improvements, cost reduction, infrastructure development, legislative and regulatory changes and alternative energy sources. The advancement of battery technology has the potential to significantly impact the cost dynamics associated with electric tugboats. It is essential to do further research to monitor the advancements in battery technology and analyze their corresponding financial ramifications. It is essential to closely monitor the industry’s shift toward electric tugboats as their prices become more affordable.Originality/value The maritime industry is rapidly transforming and facing pressing challenges related to sustainability and digitization. Electric tugboats represent a promising and innovative solution that could address some of these challenges through zero-emission operations, enhanced energy efficiency and integration of digital technologies. Considering the potential of electric tugboats, the present study provides a comprehensive review of the advantages and disadvantages of electric tugboats in maritime transportation, extensive evaluation of the relevant literature, interviews with industry experts and supporting econometric analyses. The outcomes of this research will benefit governmental agencies, policymakers and other relevant maritime transportation stakeholders.