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I have a 2003 205 sundowner it shifts fine into & out of gear both forward & reverse but if I try to accelerate off idle in reverse the engine just stalls. Is there something i can check, adjust of replace to fix this issue?

Do you have a Merc with an Alpha drive?

Yes it has a Merc 5.0 with an Alpha drive.

Shift cable sticking in reverse, keeping the shift assist engaged.
Might be time for a new cable...The reason why this is needed on dog clutch drives, is that in order to get the dog clutch to release, so you can shift from fwd or rev to Neutral, is that the torque of the engine has to be momentarily reduced. It is only supposed to engage for a second or so and then the clutch releases and the drive goes into neutral. If the switch is adjusted correctly, and you still have that problem, then the cable might be sticky keeping it engaged. Merc calls it shift interrupt OMC called it ESA for electronic shift assist. I had a similar problem on my boat when I first got it.
When these are working correctly you can actually see the tach needle dip for a second when shifting from in-gear to neutral. They do not need to engage when the boat is on land, only when the load of the water is on the prop.

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88 Four Winns 200 Horizon
4.3 OMC Cobra-4bbl
2002 Walker Bay 10/2012 Suzuki 2.5
2008 Walker Bay 8

1998 Jeep Grand Cherokee 4.0/Selectrac
2007 Jeep Grand Cherokee 5.7 Hemi/Quadradrive II

Mercs with an Alpha drive have a "interrupt" switch that is mounted on top of the engine. It needs to be readjusted. It is used to stop the engine in shifting.