A personal watercraft is provided that is capable of achieving high speeds. The craft can operate on a surface of a body of water or beneath the surface of the body of water. The personal watercraft includes a hull, a streamlined water tunnel disposed within the hull, a plurality of fins extending from the hull, a propeller disposed within the water tunnel, a motor disposed within the hull and outside of the water tunnel, a water intake at the front of the water tunnel and at the front and bottom of the hull, first and second water exhausts at the rear of the water tunnel and at the rear and bottom of the hull, and first and second handgrips located at the rear of the hull. The propeller can pull water into the water tunnel via the water intake, and the amount of water entering the watercraft at any given time is substantially the same as the amount of water exiting the watercraft via the water tunnel and the water exhausts.