The outboard motor includes a lower unit that rotatably supports a propeller shaft installed with propellers, and a shift unit that switches a shift position. The lower unit is provided with an upwardly opened shift unit storage chamber and a lid member that covers the upper side of the shift unit storage chamber. The shift unit has a dog clutch that switches the shift position by reciprocating in parallel with the drive shaft, a shift fork member that reciprocates the dog clutch in parallel with the drive shaft, and an actuator that reciprocates the shift fork member in parallel with the drive shaft. The actuator is supported by the lid member.