Abstract: A rotary engine includes a compressor assembly and two power assemblies that receive compressed air from the compressor assembly. Each assembly includes at least two intermeshing rotors. The rotors of the compressor assembly compress air, either alone or in an air/fuel mixture, in a compression chamber located in that assembly. The compressed air is transferred to the expansion chambers of the power assemblies, where fuel is ignited to initiate a power stroke. A line bisecting the axes of the rotors of the compressor assembly is inclined at an acute angle relative to a line bisecting the axes of the rotors of the power assemblies. The power assemblies operate 180° out of phase with respect to one another to minimize power fluctuations in the engine.