An outboard motor includes an engine having an output portion. A lower gear mechanism drives a propeller disposed below the engine. A transmission includes an input shaft that transmits power from the output portion to the transmission. An output shaft transmits power from the transmission to the lower gear mechanism. A reverse idler shaft is parallel to an intermediate shaft. A forward clutch is disposed on one of the input and intermediate shafts and connects and disconnects power from the input shaft to the intermediate shaft. A reverse clutch is disposed on the intermediate shaft and connects and disconnects power transmission from the input shaft to the intermediate shaft. Power of the input shaft is transmitted to the output shaft via the forward clutch and the intermediate shaft and is transmitted to the output shaft via the reverse idler shaft, the reverse clutch, and the intermediate shaft.