This work presents a state-of-the-art review of micro-combustion flame dynamics and micro propulsion systems. In the initial section, we focus in on the different challenges of micro-combustion, investigating the typical length and time scales involved in micro-combustion and some critical phenomena such as flammability limits and the quenching diameter.We present an extensive collection of studies on the principal types of micro-flame dynamics, including flashback, blow-off, steady versus non-steady flames, mild combustion, stable flames, flames with repetitive extinction, and ignition and pulsatory flame burst. In the final part of this review, we focus on micropropulsion systems, their performance metrics, conventional manufacturing methods, and the advancements in Micro-Electro-Mechanical Systems manufacturing.