Retractable propulsor assemblies for aircraft are described that generate lift during vertical take-off, hover, and vertical landing. The retractable propulsor assemblies are deployed from a compartment in a fuselage of the aircraft to transition the aircraft into vertical flight, and are stowed in the compartment during cruise flight to reduce aerodynamic drag on the aircraft. One embodiment comprises a method of operating a VTOL aircraft. The method comprises deploying the retractable propulsor assembly from the compartment of the fuselage to provide the lift for vertical flight. The method further comprises transitioning the VTOL aircraft from the vertical flight to cruise flight, and stowing the retractable propulsor assembly in the compartment during the cruise flight to reduce the aerodynamic drag on the VTOL aircraft.