Abstract: A microphone for use in underwater applications. The microphone includes a dynamic magnet and coil assembly in a housing which incorporates a hydrophobic membrane. The membrane is sufficiently porous to permit air to pass therethrough. However, water cannot pass through the membrane. The housing permits water to drain away whereby a superior underwater microphone is obtained. This invention provides the diver with a military-style noise canceling microphone that retains exceptional sound reproduction quality because it is not encapsulated. However, the new microphone can be repeatedly exposed to the marine environment without failure.