U.S. share of the world launch market fell to 20% by 2002. During that period, only two new booster engines have been developed and flight certified in this country. Only limited progress has been made in reducing engine costs or increasing performance although these factors are not necessarily directly related. Upper-stage and in-space propulsion in the United States have not fared much better in the world market. On the other hand, space-faring nations in Europe, the Middle East, Asia, and the former Soviet Union are believed to have developed 40–50 new, high-performance engines over the same period. This trend will have to be reversed to enable future exploration missions. The intent of this paper is to summarize past propulsion-system development, assess the current status of U.S. space propulsion, survey future options, evaluate potential impact of ultra low-cost, small launch-vehicle programs, and discuss some future propulsion needs for space exploration.