A powered surfboard includes a board defining a stem and a stern. An internal combustion engine is housed within the board closer to the stern than the stem. The exhaust system extends fore of the internal combustion before it bends back on itself and terminates at a position aft of the bend. This configuration acts as a valve in that, under typical operating conditions, water will not pass through the exhaust system to reach the internal combustion engine. The internal combustion engine is connected to a pump which receives the force produced by the internal combustion engine to force water to pass therethrough propelling the powered surfboard forward. The pump and the internal combustion engine are connected to the same interior surface of the hull of the board to reduce the amount of misalignment therebetween.