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Rear engine refers to an automotive propulsion layout in which the engine is located in the rear compartment, typically behind the rear axle and driving wheels. This configuration contrasts with front-engine and mid-engine layouts and often pairs with rear-wheel drive. The rear-engine arrangement has been used in passenger cars, microcars, and some aircraft and motorcycles.

Design considerations: The weight of the engine over the rear axle improved traction on acceleration, particularly with rear-wheel drive, and allowed compact packaging and more interior space when the engine is far from the passengers. However, it also introduced handling characteristics due to a rearward weight bias, including potential oversteer and reduced stability at high speed, as well as cooling and noise management challenges because cooling air must reach the engine and heat must be kept out of the cabin. Maintenance can be more complex because the drivetrain runs along the vehicle's length.

Notable examples: The Volkswagen Beetle popularized the air-cooled rear-engine layout in mass-market cars. The Porsche 911 famously uses a rear-mounted engine, originally air-cooled, later water-cooled in some generations. In the 1950s and 1960s, several compact cars such as the Renault Dauphine and Fiat 600 employed rear-mounted engines.

Decline: Since the 1970s, rear-engine designs have become rare in mainstream automobiles, replaced by front-engine front- or rear-wheel-drive layouts or mid-engine configurations in performance cars. They remain of interest for niche vehicles and certain aviation applications.