This paper describes the experimental method of a pod-type waterjet propulsion system in a towing tank and shows the experimental analysis and test results of a designed waterjet propulsion system to be used for a hybrid high speed craft. The cruising performance of this craft is estimated from the results of the hull resistance test and waterjet test under the assumption that the interaction between the hull and the inlet pod is very small. A pod-type waterjet system with an axial pump was designed and a stand-alone waterjet experimental system was developed. Useful data such as the pump performance, the jet efficiency, the losses of inlet duct and nozzle were obtained. Test results show a good agreement with the design requirement.