This document describes a 1.3 hp heavy fuel engine developed by D-STAR Engineering Corporation in 2007 for use in micro air vehicles. The four-stroke piston engine can run on JP-8 fuel with 3% oil additives, has a displacement of 0.54 cubic inches, and demonstrated higher than targeted power of 1.5+ hp and specific fuel consumption rates 30-40% better than goals. The engine met its objectives, started and ran at temperatures from -20 to 140 degrees Fahrenheit, and D-STAR delivered 10 engines to DARPA for testing.