The Air Force Research Laboratory (AFRL) has awarded Aurora Flight Sciences and its partner the Georgia Institute of Technology a contract to continue research and development of next-generation distributed controllers for turbine engines. Aurora is developing future engine-control systems based on adaptive, smart subsystems that process their own control algorithms. Such a system would have potential for improvements in reliability, modularity, and reduced engine weight. Aurora will be working with Georgia Tech to build on the team’s successful Phase 1 demonstration of the feasibility of the Distributed Adaptive Engine Control approach. The Phase 2 program will refine the control theoretic architecture and develop and demonstrate a prototype controller with physical engine testing.