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In neutral, the propeller shaft is not engaged with any other part of the motor so the prop will spin freely. You'll often see this when a boat is being towed down the highway - the prop is spinning the same as a windmill does in the wind. It's best to let it spin cause if you put the motor in gear and the prop hits something, such as your driveway while you're going in or out of your yard, there is no give and you could damage your prop or worse, the gears inside.

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Q: Should an outboard prop spin while in neutral?
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