Present combustion engines have reached almost at the limit of development due to the fundamental structural problems. This study was carried out to propose a new concept internal combustion engine which has great potential advantages to the conventional engines. Proposed new concept engine is a kind of rotary engine. A rotor is rotating concentrically in a cylinder which is divided into two partitioning valves. and it makes four compartments in the cylinder. The volumes of each of four compartments are changing continuously with the rotor movement, and performs the functions of intake, compression. expansion and exhaust simultaneously. The results of this study can be summarized as follows. 1. Expected theoretical thermal efficiency is 44.9 percent at the condition of 1000rpm and compression ratio of 8.0. which is almost the same as that of the conventional engines. i.e., piston and Wankel rotary engine. 2. The new concept engine has 2. working strokes in every revolution. Therefore. the new concept engine can reduce the specific weight and volume than four-stroke piston engine. 3. The torque variation is very small. therefore minimal noise and vibration are expectable. 4. The new concept engine can reduce mechanical energy loss than piston engine because neither crank mechanism nor eccentrical motion exists.