In this paper, it is dealt with that the Hamilton formulation of nonlinear
water waves in a two-fluid system, which consists of two layers of constant
-density incompressible inviscid fluid with a horizontal bottom, an interfa
ce and a free surface. The velocity potentials are expanded in power series
of the vertical coordinate. By taking the kinetic thickness of lower fluid
-layer and the reduced kinetic thickness of upper fluid-layer as the genera
lized displacements, choosing the velocity potentials at the interface and
free surface as the generalized momenta and using Hamilton's principle, the
Hamiltonian canonical equations for the system are derived with the Legend
re transformation under the shallow water assumption. Hence the results for
single-layer fluid are extended to the case of stratified fluid.