Abstract: An apparatus and method for cooling exhaust in an outboard marine propulsion system provides engine cooling water to the exhaust prior to its discharge into an exhaust cavity formed in the upper portion of a depending gearcase. Excessive heating of the walls surrounding the exhaust cavity is thereby provided. Various embodiments are disclosed for diverting a portion of cooling water from a point adjacent an engine cooling water inlet into the exhaust path prior to discharge into the exhaust cavity.