Several embodiments of personal watercraft employing exhaust systems that incorporate not only a catalyst, but also an exhaust silencing device for silencing the sounds of the exhaust gases. The components are laid out in such a way that there will be minimum heat transfer from the exhaust gases to the engine compartment, and also so that there will be a cooling air flow across the exhaust system to further provide this result. In one embodiment, the silencing device is mounted transversely at the front of the engine, and in other embodiments it is disposed longitudinally to the rear of the engine. In all embodiments, the components are laid out to maintain good fore and aft and side to side balance.