-----BEGIN PRIVACY-ENHANCED MESSAGE-----
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,
 H9vBRITgO4IBieKYJ2W+IGlTy2pPbgDxXl+KQFlXD19mSUtHWDmF4tXe6cI/RWEf
 YeGJ7IQo2Pr3ILMocyEYNg==

<SEC-DOCUMENT>0001225208-09-019213.txt : 20090923
<SEC-HEADER>0001225208-09-019213.hdr.sgml : 20090923
<ACCEPTANCE-DATETIME>20090923162613
ACCESSION NUMBER:		0001225208-09-019213
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20090921
FILED AS OF DATE:		20090923
DATE AS OF CHANGE:		20090923

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:		1332 LONDONTOWN BLVD
		CITY:			SYKESVILLE
		STATE:			MD
		ZIP:			21784
		BUSINESS PHONE:		4109707874

	MAIL ADDRESS:	
		STREET 1:		1332 LONDONTOWN BLVD
		CITY:			SYKESVILLE
		STATE:			MD
		ZIP:			21784

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Cobbs Wharf Master Fund, L.P
		CENTRAL INDEX KEY:			0001460428

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14785
		FILM NUMBER:		091082897

	BUSINESS ADDRESS:	
		STREET 1:		470 ATLANTIC AVE
		STREET 2:		10TH FLOOR
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02210-2208
		BUSINESS PHONE:		617-761-3900

	MAIL ADDRESS:	
		STREET 1:		470 ATLANTIC AVE
		STREET 2:		10TH FLOOR
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02210-2208
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>doc4.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2009-09-21</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

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

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001460428</rptOwnerCik>
            <rptOwnerName>Cobbs Wharf Master Fund, L.P</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>470 ATLANTIC AVE.</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>BOSTON</rptOwnerCity>
            <rptOwnerState>MA</rptOwnerState>
            <rptOwnerZipCode>02210</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isTenPercentOwner>1</isTenPercentOwner>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2009-09-21</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>10000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>6.1</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>625000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes></footnotes>

    <remarks></remarks>

    <ownerSignature>
        <signatureName>By: Cobbs Wharf Management LLC, Its General Partner and By: Babson Capital Management LLC, Its Managing Member /s/ Daniel Whitcomb, Managing Director</signatureName>
        <signatureDate>2009-09-23</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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