The word airboat comprises of the two words namely Air and Boat . Boat is a means of transport of goods , people etc by means of water . Thus the boat which runs on the water surface by means of the propelling force derived from the air is called an airboat .The cons of the water propelled boat are that they require high fuel to run the motor which in turn runs the propeller . This costs high to the boatsmen which are having poor standard of living . Moreover the dirts present in the water stream also hinders the operation . The other factors which effects the performances are density of water , drag experienced by the boat and so on.This paper aims at design and fabrication of airboat which reduces the fuel cost ,friction and problems associated with density of the liquid over which the boat is moving. This paper states about the fabrication of an airboat model that comprises of a propeller fan powered by the 12 V dc supply and works on the principle of Newton’s third law .A rudder to change the direction of the boat due to effect of pressure difference across its blade and air tube which floats over the liquid . It reduces the friction and takes care of the buoyancy effects.