A vertical internal combustion engine includes a crankshaft enclosed in a crank chamber, a belt-drive transmission mechanism held in a belt chamber and including a rubber belt for transmitting power of the crankshaft to a camshaft included in a valve train, and a transmission case defining the belt chamber. The transmission case has a lower case between the crank chamber and the belt chamber. The belt has a part extending over the crank chamber, and the lower case is disposed to screen the part of the belt from the crank chamber. The belt is lubricated by oil in oil-containing gas from the crank chamber. Thus the oil containing gas is prevented from excessively contacting the rubber belt, so that the life of the belt is extended.