An azimuth thruster is a configuration of marine propellers placed in pods that can be rotated to any horizontal angle (azimuth), making a rudder unnecessary. These give ships better maneuverability than a fixed propeller and rudder system.

There are two major variants, based on the location of the motor:[citation needed]

Mechanical transmission, which connects a motor inside the ship to the outboard unit by gearing. The motor may be diesel or diesel-electric. Depending on the shaft arrangement, mechanical azimuth thrusters are divided into L-drive and Z-drive. An L-drive thruster has a vertical input shaft and a horizontal output shaft with one right-angle gear. A Z-drive thruster has a horizontal input shaft, a vertical shaft in the rotating column and a horizontal output shaft, with two right-angle gears.Electrical transmission, more commonly called pods, where an electric motor is fitted in the pod itself, connected directly to the propeller without gears. The electricity is produced by an onboard engine, usually diesel or gas turbine. Invented in 1955 by Friedrich W. Pleuger and Friedrich Busmann (Pleuger Unterwasserpumpen GmbH), ABB Group's Azipod was the first product using this technology.The most powerful podded thrusters in use are the four 21.5 MW Rolls-Royce Mermaid units fitted to RMS Queen Mary 2.[1]

Mechanical azimuth thrusters can be fixed installed, retractable or underwater-mountable. They may have fixed pitch propellers or controllable pitch propellers. Fixed installed thrusters are used for tugboats, ferries and supply-boats. Retractable thrusters are used as auxiliary propulsion for dynamically positioned vessels and take-home propulsion for military vessels. Underwater-mountable thrusters are used as dynamic positioning propulsion for very large vessels such as semi-submersible drilling rigs and drillships.