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The crankcase-scavenged two-stroke-cycle engine is preferred in cases where low weight and high power output are paramount requirements. These qualities are most important in small pilotless aircraft. It was found that the main problem in the use of two-stroke cycle engines for this purpose, is a sharp decrease in the engine power with the increase in altitude. This is attributed not only to the low density of the ambient air, but also to the deterioration of the efficiency of the gas exchange process. In order to improve the engine performance at high altitude, it is proposed here to employ a stepped-piston engine. The engine is constructed of a stepped piston and a single stepped cylinder thus forming three compartments; a power, a compression and a crankcase compartment. In this arrangement, the fresh charge is compressed in the compression compartment before it enters the crankcase compartment.