The incident comes just a month after passengers were stranded for four days in the Gulf of Mexico on board the Carnival Triumph in what some described as toxic conditions.
Several passengers aboard the Carnival Dream, which is currently docked in Philipsburg, St Maarten in the Caribbean talked of human waste all over the floor in some bathrooms, as well as power outages.
According to a statement from the cruise line, Carnival Dream developed a technical issue with the ship's backup emergency diesel generator.
"At no time did the ship lose power and the ship's propulsion systems and primary power source was not impacted.
"There were periodic interruptions to elevators and restroom services for a few hours last night," added the statement.
Carnival is making arrangements to fly all guests home via private charter flights and scheduled flights from St. Maarten.
The cruise line confirmed it would cancel the ship's next voyage which is scheduled to depart on Saturday, March 16th.
Guests scheduled to sail on this cruise will receive a full refund and 25 per cent off a future seven-day cruise.
Guests who re-book will have their current rate protected on the future sailing.
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