Yes, fossils can be found underwater. One of the recent discoveries of scientists was the underwater fossil found in a site in Bahamas. The site contained about 5,000 fossils from 96 different species (63 birds, 13 fishes, 11 reptiles and 8 mammals). The fossils were emerged in water and it is believed that they were placed there since the Pleistocene era, that’s over 11,700 years ago.
In Madagascar, scientists found an unusual place hidden in a series of underwater caves. Skeletons that are potentially up to 1000 years old were also found.
Underwater digging is very expensive and labour intensive, that’s why it is not easy for scientists to discover more fossil. All the fossils that have been collected are within the range of our collection methods, only what is within our reach has been collected.