A three stage watercraft for operation in the water as a traditional boat at low speeds in stage one, for operation on the water's surface at mid-range speeds at stage two, and for traveling in ground effect at higher range speeds is disclosed. The three stage craft includes a hydro-wing 12, at least a single hydrofoil 13 to aid with lift from stage one to stage two, and a pair of outboard floats or hydro-floats 16a, 16b supported by the hydro-wing 12, which are also designed to aid with lift from stage one to stage two. A gyration rotor 14 to aid with lift from stage one to stage two may also be provided as may a pair of pivotally mounted air propellers which aid in lift and propulsion by varying their operational angle relative to the plane of travel of the craft.