In　Yangtze　River　traffic　management,　to　manage　ship　sequencing　and　scheduling　effectively　and　efficiently　in　restricted　waterways　has　long　been　a　challenging　issue.　This　paper　proposes　a　Sliding　Window　based　Online　ship　Sequencing　and　Scheduling　algorithm　(OSS-SW)　to　tackle　this　problem.　The　OSS　algorithm　is　capable　of　generating　a　more　efficient　ship　sequence　by　introducing　the　＇position　shift＇　concept　which　takes　advantages　of　ships＇　sailing　time　differences　in　the　restricted　waterway.　The　sliding　window　mechanism　on　the　other　hand　is　introduced　to　handle　the　traffic　uncertainties　and　to　reduce　the　computational　complexity.　The　impact　of　the　restricted　waterway　congestion　on　the　performance　of　OSS-SW　is　also　investigated.　Further,　the　parameter　settings　of　the　proposed　OSS-SW　are　investigated　in　detail.　Both　simulation　studies　and　the　real　data　applications　confirm　that　the　proposed　OSS-SW　algorithm　outperforms　the　existing　widely　adopted　Traffic　Signal　Revealing　System　(TSRS)　and　the　Expert　System　based　algorithm　(FAHP-ES)　in　solving　the　ship　sequencing　and　scheduling　problem.