This paper describes the concept of viscoelastic composites and how their dynamic physical characteristics may be exploited for ship applications where high vibrational damping and damage tolerance is a requirement. A mathematical model is used to describe the effect of fibre alignment on viscoelastic composite dynamic Young's Moduli and loss factors. The model, supported by experimental validation, requires the dynamic physical properties of the matrix resin for the range of operational temperatures and frequencies of interest. The model predicts that the resulting loss factor of a fibre reinforced viscoelastic resin composite behaves in an anisotropic fashion, however, damping optimisation may be achieved in two different ways dependant on the angle of fibre alignment. The implications of these findings and how the fibre alignment in a viscoelastic composite may be exploited for noise free ship and submarine machinery rafts are also discussed. Empirical studies on viscoelastic composites of this type using a drop weight impact tester have shown that their damage tolerance is superior to conventional glass reinforced polyester GRP. Although a theoretical analysis has not been made, it is implied that the viscoelastic nature of the matrix resin and its optimisation over the typical damaging impact frequencies is an important factor in absorbing the impact energy in much the same way as it is for absorbing vibrational energy. In this case the impact impluse is considered to be one particular extreme form of vibrational source. Provided the impact force can do work on the matrix, the energy will be absorbed by it if the viscoelastic nature of matrix is correct with little or no resulting damage to the composite.