FIELD: engines and pumps. ^ SUBSTANCE: invention is related to steam engines. Suggested engine with heat regeneration uses water both as working fluid and as lubricating material. During operation water is supplied by pump from collecting tray via coil around exhaust opening of cylinder, and as a result water is previously heated by steam exhausted from cylinder. Then preliminarily heated water is supplied to steam generator and is heated by means of combustion chamber to generate superheated high-pressure steam. Air is preliminarily heated in heat exchanger, and then is mixed with fuel from fuel sprayer. Spark plug ignites sprayed fuel, and flame and heat centrifuge is created inside combustion chamber. Speed and torque moment of engine are controlled by system of yoke and cam, which opens needle valve for inlet of superheated high-pressure steam in cylinder, inside of which there is piston of reciprocal travel. Supplied steam expands in explosive action at piston top at high pressure, which makes the piston