A marine stern drive unit is mounted aft of the boat transom on a rigid lift arm in a manner allowing the drive unit to be independently trimmed or moved vertically up or down. The drive unit is pivotally attached to the aft end of the lift arm for trimming movement about a generally horizontal axis and the lift arm is pivotally attached to the boat to rotate about a second horizontal axis such that the drive unit is moved generally vertically. The boat engine is preferably mounted transversely and power transmission from the engine to the drive unit is provided by a flexible drive belt which is supported by the rigid lift arm. Separate trim and lift movement is supplied to the drive unit by individual fluid cylinders. The trim cylinder operatively interconnects the drive unit with the boat hull or the forward end of the lift arm. The lift cylinder operatively interconnects the boat hull and the lift arm at a point aft of its pivotal connection to the boat.