This paper proposes an agent-based modeling and simulation methodology for analyzing the tactical and operational effectiveness of warfare environment. To do this, we adopt the advanced agent modeling principle, HEAP (Hierarchical Encapsulation and Abstraction Principle), as well as the hierarchical modeling and simulation framework, SES/MB (System Entity Structure/Model Base). Proposed methodology is differentiated from other conventional agent-based defense M&S approaches in that; (i) it supports an intelligent hierarchical multi-agent architecture, (ii) it provides an efficient mechanism for analyzing the strategic and operational effectiveness of warfare environment between multiple platforms. The proposed methodology is successfully applied to the two by two warships warfare simulation for analyzing the tactical effectiveness.