A watercraft has an engine that is controlled to provide a comfortable and natural operational feeling during an off-throttle steering environment. The engine is controlled by detecting engine speed, using the detected engine speed to establish an accurate watercraft speed, and detecting an operator steering torque and operator engine torque request. An operational characteristic of the engine is adjusted to increase the engine output by a predetermined amount after a predetermined steering torque is measured and the watercraft is determined to be in a predetermined deceleration phase. The operational characteristic can be an increase in airflow to the engine.