Modern progress of laser propulsion is highlighted with considerable developments in both design of state‐of‐the‐art laser propulsion engines (LPE) and understanding of their possible applications for launching satellites and in‐space missions. LPE are characterized by efficiency of 20–40 &percent; and specific impulses from 103s for systems utilizing shock waves with fluid propellants and up to 4×103s for ablative laser propulsion. These systems can be used for both long‐term vehicle space missions and short‐term missions on near‐Earth orbits. In a view of these developments, the paper opens a discussion for a possible in‐space laser propulsion demonstrator (ISLPD) mission, which can be accomplished in the nearest future. Technical requirements for ISLPD implementation will be presented. © 2004 American Institute of Physics