This paper discusses the potential of the hybrid rocket engine as a viable and attractive mode of propulsion for both space vehicles and missiles. Research and development work on this engine in other countries is presented and evaluated. The various advantages of a hybrid engine over solid and liquid engines and its problems are highlighted. It has been argued that because of the low technology needed in the development of the hybrid system, it constitutes a cost-and-time-effective propulsion system for several applications in space programmes as well as weapon systems. In support of this conclusion, experience on the developmental studies of a variable thrust 100 kg engine is presented. Some future possibilities for hybrid propulsion systems are cited.