Metal iron powder is a promising new type of energy source that is of enormous practical and research interest for future automotive power systems. To better optimize engine design, this study was devoted to the characteristic investigation of a two-phase flow. Experimental studies involving nanometer iron powder particle combustion and engine thrust measurement were conducted to confirm the results obtained from numerical calculations that were performed using a fourth-order Runge-Kutta-Gill method. Governing equations for nozzle two-phase flow were established to perform a theoretical study to analyze the combustion properties of iron oxide particles and flow in the nozzle. The results indicate that variations in the size and coagulation content of particles play a significant role in the loss of two-phase flow. Significant emphasis was placed on the effect of particle size (0.4-1.0 mu m) and condensate content (10-40%) of ultrafine particles on the specific impulse. To further validate the theoretical results, the burning rates of particles of three different sizes were experimentally measured. In addition, the motor thrust and the specific impulse with the particle size of 50 nm were tested through combustion experiment, and the results show excellent agreement. (C) 2018 The Society of Powder Technology Japan. Published by Elsevier B.V. and The Society of Powder Technology Japan. All rights reserved.