Mercury 200XL Verado Prop Shaft Seals Replacement

Got the lower unit from your Mercury outboard removed? Take advantage that it’s out and replace the oil seals. Using this opportunity to replace all the seals at once could save you the hassle of having to remove the gearcase from your outboard as often.

Watch the video above and follow the steps below to replace the prop shaft seals on a Mercury 200 outboard.

NOTE: We worked on a Mercury 200XL Verado, but the steps are the same or similar for most outboard motors.

Tools and Parts - Mercury 200 Outboard Output Shaft Seals Change

• Ratchet and extensions
• 15mm, 19mm sockets
• Hammer
• Screwdriver
• Punch
• Breaker bar

• Drain pan
• Contact/brake cleaner
• Blue threadlocker
• Lower unit seal kit
• 2-4-C grease

Aside from the tools listed above, you’ll also need the following specialist tools:

• Torque wrench capable of tightening to 210 ft/lbs
• Bearing carrier removal tool
• Retaining ring removal tool
• Slide hammer set
• Bearing driver kit

NOTE: Before you can replace the shift shaft seals, you must remove the lower unit from your outboard. Watch our Mercury 200 lower unit removal video below to see how it’s done.

How to Replace Mercury 200XL Verado Prop Shaft Seals

Step 1. Drain the oil from the lower unit by removing the vent/fill screw on the upper right side of the gearcase and the oil drain screw under the prop shaft.

Step 2. Locate the tab from the washer beneath the retaining ring and bend it away from the retaining ring.

Step 3. Remove the retaining ring using a retaining ring removal tool and a breaker bar. 

Step 4. Remove the bearing carrier assembly from the lower unit using a bearing carrier removal tool. Tilt the prop shaft downward as you remove the bearing carrier assembly to prevent any debris from falling back into the gearcase.

Step 5. Clean out the lower unit, the prop shaft and prop shaft splines with contact-brake cleaner.

Step 6. Remove the reverse gear from the bearing housing by clamping the housing, and using a slide hammer to pop the reverse gear free. 

Watch the clip below to see the bearing carrier and reverse gear removal segment of our Mercury 200XL Verado prop shaft seals video.

Step 7. Thoroughly clean the bearing carrier assembly, the bearings and the reverse gear, then remove the seals from the bearing carrier using a punch and hammer.

Step 8. Apply blue threadlocker to the new oil seals (included in the lower unit seal kit). Next, put the first one into the bearing carrier and press it into place using a bearing driver that is small enough to fit inside the bearing carrier and wide enough to sit on the outer edge of the oil seal. (For the 200 XL Verado, a 40mm bearing driver should be a suitable size.) Repeat the process for the second oil seal.

Step 9. Pack the space between the new oil seals with 2-4-C grease, and grease the tapered bearing and the reverse bearing.

Watch the video below to see the seal replacement segment of our Mercury 200XL Verado prop shaft seals video.

Step 10. Reinstall the tapered bearing into the bearing carrier.

Step 11. Press the main bearing to make sure it’s fully seated in the bearing carrier. 

Step 12. Install the O-ring, thrust washer and the reverse gear into the bearing carrier, and press them into place until they bottom out. 

PRO TIP: Use a piece of wood to prevent the press from damaging the reverse gear.

Step 13. Reinstall the thrust spacer and the shim onto the prop shaft.

Watch the clip below to see the bearing carrier reassembly segment of our Mercury 200XL Verado prop shaft seals video.

Step 14. Reinstall the bearing carrier assembly into the lower unit. Make sure the drain hole in the bearing carrier assembly is at the bottom.

Step 15. Reinstall the tab washer and the retaining ring into the lower unit.

Step 16. Torque the retaining ring to 210 foot-pounds.

Step 17. Bend the tab on the washer back over the retaining ring to secure it.

Step 18. Refill the lower unit with lube.

Watch the clip below to see the bearing carrier reinstallation segment of our Mercury 200XL Verado prop shaft seals video.

After replacing the prop shaft seals, you’ll need to reinstall the lower unit onto the outboard. Watch our Mercury 200XL Verado lower unit installation video below to get that done.