Abstract: A jet-propelled rotary engine comprises a housing, a rotor journalled to the housing for rotation of the rotor about an axis, and at least one jet assembly secured to the rotor and adapted for combustion of a pressurized oxygen-fuel mixture. The jet assembly includes a hollow body having a closed leading end and an open trailing end downstream of the leading end. The hollow body defines a chamber having a combustion region where the pressurized oxygen-fuel mixture reacts during combustion to form combustion reaction products, a throat region downstream of the combustion region, a converging region extending from the combustion region to the throat region, and a diverging region extending from the throat region to the trailing end. The combustion reaction products form at least a part of thrust matter passing through the hollow body and discharged therefrom. The converging and diverging regions are configured for increasing the kinetic energy of and expanding the thrust matter.