Disclosed herein is a marine propulsion device comprising a power head including an internal combustion engine having a vertical crankshaft with a lower end having fixed thereon a bevel gear, a lower unit including a rotatably mounted propeller shaft carrying thereon a propeller, a horizontal cross shaft journaled in the lower unit and in the power head for pivotally connecting the lower unit to the power head for vertical tilting movement about a horizontal tilt axis, a transfer gear fixed to the cross shaft and in mesh with the bevel gear, a drive shaft extending in the lower unit and drivingly connected to the propeller shaft and to the cross shaft, a reversing transmission operably connected between the cross shaft and the drive shaft, a rudder pivotally mounted on the lower unit aft of the propeller, and mechanism on the lower unit for pivoting the rudder.