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Small displacement two-stroke engines are cheap and low-maintenance propulsion systems and commonly used in scooters, recreation vehicles and handheld power-tools. The restriction by emission legislation and the increasing environmental awareness of end users as well as decreasing energy resources cause a rethinking in the development of propulsion systems and fuels in these fields. Despite recent improvements of electric powertrains, two stroke engines are the challenged propulsion system in high performance handheld power tools at the moment. The reasons are the extraordinary high power to weight ratio of two-stroke engines, the high energy density of liquid fuels and the reliability of the product with respect to extreme ambient conditions. Nevertheless, further improvements on emissions and fuel consumption of small displacement two-stroke engines can be realized.