A method for small-scale fishing boat to avoid ship collision includes the steps of: (1) equipping the small-scale fishing boat with a radar signal receiver for scanning and receiving radar signals transmitted by other ships within the receiving range of the radar signal receiver; (2) using a monitoring computer having a Marine Geographic Information System (Marine GIS) installed thereon to obtain at real time information about the distance, bearings, and etc. of other approaching ships in order to monitor the dynamic conditions of the approaching ships within the fishing boat's operating water area; and (3) actuating a collision warning mechanism based on the intensities of received radar signals when there is more than one approaching ship, so that the small-scale fishing boat can timely receive a collision warning to reduce the risk of collision and maintain safe and smooth voyage on the sea.