A novel turbo rotary engine, operating according to a novel thermodynamic cycle, having an efficient compression phase, a limited temperature combustion phase followed by a long power extraction phase is designed. Thermodynamic and structural design and analysis of this novel engine is carried out and two prototypes are manufactured according to these analysis. High performance figures such as torque, power and low specific fuel consumption are calculated. Also the component tests of the manufactured prototypes are completed and their results are demonstrated.