A man has been arrested in connection to the murder which is reported to have taken place on the ship off the coast of Alaska on July 25 following a “domestic dispute”.
The victim has been identified as 39-year-old Kristy Manzanares from Utah and witnesses have said she was travelling with her children.
The Emerald Princess ship had departed from Seattle on July 23 for a week-long trip.
The death on Tuesday night triggered a lockdown of the 3,400-passenger vessel.
Passengers told CBS News that a “murder mystery” theme dinner had been taking place when the incident occurred, leading several passengers to believe that the crime which took place at approximately 9.00pm was a hoax.
A Princess Cruises spokesperson said: “Since the incident, our fleet security team has been coordinating with the FBI, U.S. Coast Guard and other local authorities.
“Our thoughts are with the family and all those impacted by this tragic event.”
Following the death of Manzanares, Emerald Princess was diverted to Juneau, Alaska and passengers were kept onboard for eight hours whilst a police investigation was carried out.
A Princess Cruises spokesperson added: “The scheduled scenic cruising of Tracy Arm Fjord for July 26 was cancelled as the ship sailed directly to Juneau.
“At 11.15pm on July 26, the ship departed Juneau for Skagway, continuing its scheduled cruise.
"Guests who had shore excursions booked for Tracy Arm Fjord will have their shipboard folio credited automatically, and pre-paid shore excursions will be refunded.
"Additionally, in light of the impact on guest’s cruise vacations, Princess Cruises has issued each guest a $150 onboard credit."
The FBI and Coast Guard are both currently investigating the death as it occurred in US waters.