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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 IXQSvDxlpfOoPfgcGLdZoWKvHe5H1qdN92+SmzuUXYszLo1dog06GgAZq+QeT1oV
 gvU3b3maUEc7sgb+CKzEGQ==

<SEC-DOCUMENT>0000944480-05-000014.txt : 20050324
<SEC-HEADER>0000944480-05-000014.hdr.sgml : 20050324
<ACCEPTANCE-DATETIME>20050324110812
ACCESSION NUMBER:		0000944480-05-000014
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050322
FILED AS OF DATE:		20050324
DATE AS OF CHANGE:		20050324

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GSE SYSTEMS INC
		CENTRAL INDEX KEY:			0000944480
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				521868008
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		9189 RED BRANCH ROAD
		CITY:			COLUMBIA
		STATE:			MD
		ZIP:			21045
		BUSINESS PHONE:		4107723500

	MAIL ADDRESS:	
		STREET 1:		9189 RED BRANCH ROAD
		STREET 2:		9189 RED BRANCH ROAD
		CITY:			COLUMBIA
		STATE:			MD
		ZIP:			21045

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Hough Jeffery G
		CENTRAL INDEX KEY:			0001321525

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14785
		FILM NUMBER:		05700733

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		410-740-5879

	MAIL ADDRESS:	
		STREET 1:		10370 SWIFT STREAM PLACE
		STREET 2:		APT. 305
		CITY:			COLUMBIA
		STATE:			MD
		ZIP:			21044
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>f4_032405ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-03-22</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000944480</issuerCik>
        <issuerName>GSE SYSTEMS INC</issuerName>
        <issuerTradingSymbol>GVP</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001321525</rptOwnerCik>
            <rptOwnerName>Hough Jeffery G</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>9189 RED BRANCH ROAD</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>COLUMBIA</rptOwnerCity>
            <rptOwnerState>MD</rptOwnerState>
            <rptOwnerZipCode>21045</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Chief Financial Officer</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Employee Stock Option</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.85</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-03-22</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>32654</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>1.85</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2005-03-22</value>
            </exerciseDate>
            <expirationDate>
                <value>2012-03-22</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>32654</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>32654</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <ownerSignature>
        <signatureName>Jeffery G. Hough</signatureName>
        <signatureDate>2005-03-24</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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