A small watercraft includes an improved exhaust system that reduces the width of the engine and associated exhaust pipes. The watercraft includes a hull having a length in a longitudinal direction, a width in a lateral direction, and a longitudinal center line. A multi-cylinder engine is carried by the hull. The engine includes an exhaust system with multiple exhaust inlet ends and at least one downstream end. The exhaust inlet ends communicate with the respective cylinders of the engine. A flow axis through each inlet end extends in a direction generally parallel to the longitudinal axis of the hull. As a result, the exhaust system does not significantly protrude in a lateral direction beyond the sides of the engine. The hull consequently has a smaller width than the prior watercrafts which improves it maneuverability.