This paper proposes a vessel recognition and classification system based on vessel acoustic signatures. Teager Energy Operator (TEO) based Mel Frequency Cepstral Coefficients (MFCC) are used for the first time in Underwater Acoustic Signal Recognition (UASR) to identify platforms the acoustic noise they generate. TEO based MFCC (TEO-MFCC), being more robust in noisy conditions than conventional MFCC, provides a better estimation platform energy. Conventionally, acoustic noise is recognized by sonar oper-ators who listen to audio signals received by ship sonars. The aim of this work is to replace this conventional human-based recognition system with a TEO-MFCC features-based classification system. TEO is applied to short-time Fourier transform (STFT) of acoustic signal frames and Mel-scale filter bank is used to obtain Mel Teager-energy spectrum. The feature vector is constructed by discrete cosine transform (DCT) of logarithmic Mel Teager-energy spectrum. Obtained spectrum is transformed into cepstral coefficients that are labeled as TEO-MFCC. This analysis and implementation are carried out with datasets of 24 different noise recordings that belong to 10 separate classes of vessels. These datasets are partially provided by National Park Service (NPS). Artificial Neural Networks (ANN) are used as a classification method. Experimental results demonstrate that TEO-MFCC achieves 99.5% accuracy in classification of vessel noises. © 2016 IEEE.