A controller is developed to make surface ships track a reference trajectory using only position and heading measurements for feedback under the environmental disturbances. The controller is first developed for full state feedback. A nonlinear dynamic filter, which is fundamentally different from the linear and high gain filters used in literature, is then designed to construct surge, sway and yaw velocities. The solution utilizes several properties of the ocean surface ships. Numerical simulations on a monohull ship with the length of 32 illustrate the effectiveness of the proposed controller. Numerical simulations on a monohull ship with the length of 32 illustrate the effectiveness of the proposed controller.