A multihull hydrofoil watercraft incorporates a stabilization system wherein the buoyancy of the hulls is used as a sensing and control mechanism for the hydrofoils. The use of hull buoyancy to adjust the hydrofoil lift provides for automatic control of altitude, pitch and roll, and allows the craft to accommodate varying weather and sea conditions while providing a smooth ride for passengers. The stabilization technique eliminates the need for extraneous sensing mechanisms placed in or on the water surface which are subject to fouling, damage, or disruption by localized surface disturbances.