A boundary layer turbine (BLT) engine has a housing formed by an outer cylinder a first and a second faceplate, a turbine shaft through the faceplates, a stack of alternating disks and spacers with central holes joined to the turbine shaft leaving an outer combustion zone, an air inlet through the first faceplate, an exhaust port through the second faceplate, a fuel port through the outer cylinder, and an ignition device communicating with the combustion zone. The disks and spacers have openings forming separate intake and exhaust channels parallel to the turbine shaft, one channel channeling air from the air inlet port to spaces between disks, and the other channel channeling exhaust from the combustion zone through the exhaust channel to the exhaust port. Fuel is injected into the combustion zone, the air fuel mixture is ignited, and exhaust products impart torque to the turbine shaft by boundary layer friction.