Abstract: A hydrofoil propulsion system (10) utilizing dual water propellers (16) in combination with dual shrouded air propellers (18). The air propellers (18) and the water propellers (16) are powered by diesel engines (22) mounted in pairs inside the hull (24) of the hydrofoil craft (b 14). Each water propeller (16) is affixed to an outdrive 35 through a pivotal propeller shaft (28) that permits the propeller shaft (28) and the water propeller (16) to move horizontally and vertically with respect to the hull (24). An air propeller (18) and a water propeller (16) are each coupled to a single pair of engines (22) so that as the craft (14) transitions from the hullborne mode to the foilborne mode, the thrust load is automatically transferred from the water propeller (16) to the air propeller (18).