Abstract: A shaft seal assembly includes a rotor rotationally keyed to a propeller ft; a non-rotating, floating bushing surrounding the rotor; and means for maintaining a fluid seal between the bushing and a housing for the seal assembly. The adjacent surfaces of the rotor and the bushing define a water lubricated bearing interface wherein one of the surfaces is formed of a thin, compliant material and the other surface has axially extending grooves formed therein. The lubrication grooves are arranged in an alternating pattern wherein adjacent lubrication grooves extend from opposite surfaces edges and have portions which axially overlap in spaced apart relationship.