Invention relates to the paddle-wheel propelling mechanisms, especially to the steerable and retractable paddle-wheel mechanisms for propelling boats. The paddle-wheel propulsion and steering mechanism comprises a frame structure for securing the mechanism to the boat; a propulsion mechanism for propulsion of the boat; a paddle-wheel upward and downward moving mechanism for movement of the paddle-wheel relative to a waterline of the boat; and a steering mechanism for steering of the boat.