Abstract: A rotary internal combustion engine comprising an external rotor housing with a wall defining an internal cylindrical chamber, an inlet for supplying compression fluid, an ignition assembly for igniting fluid within the chamber, a transfer assembly for transmitting fluid to the chamber, and an outlet exhausting combustion exhaust from the chamber. A cylindrical rotor element is also mounted within the chamber on a central rotating shaft, and includes an engagement surface with lobes extending therefrom. A seal controls the flow of fluid between the rotor element and housing wall. Rotatable pawls are mounted in the housing wall, each with an engagement surface, and movable between a position contiguous with the wall and a position wherein projecting from the wall into said chamber to continuously engage the rotor element. Rotation of the rotor element moves the pawls in continuous engagement with lobes between positions to define operating chambers located intermediate the housing wall and rotor element.