The Institute of Aeronautics and Applied Mechanics (IAAM) was established in 1975 by fusion of the Institute of Aeronautics and Hydrodynamics and the Institute of Applied Mechanics. The IAAM together with the Institute of Heat Engineering forms the Faculty of Power and Aeronautical Engineering. The IAAM is one of the biggest institutes in Warsaw University of Technology employing more than 80 persons of academic staff, among them 21 professors. The Institute continues a glorious tradition of Polish airplane design, i.e., the activity pursued by the Institute of Aerodynamics founded in 1926. The old building of the Institute of Aerodynamics is nowadays the important part of IAAM. It is worthwhile to note that 10 wind tunnels were at the disposal of Polish engineers that time. The research conducted at the institute supplied the background for famous Polish aircraft designs before the Second World War. The Institute of Aeronautics and Applied Mechanics employs well trained and experienced staff working in 7 divisions: Division of Aerodynamics, Division of Automation and Aeronautical Systems, Division of Mechanics, Division of Fundamentals of Machine Design, Division of Airplanes and Helicopters, Division of Theory of Machines and Robotics, Division of Strength of Materials and Structures. The scientific activity of the Institute covers not only the scopes defined by the names of its divisions but also such interdisciplinary fields as biomechanics, mechatronics, control theory and safety engineering. The quality and scope of the research conducted is based on an advanced, mainly computer-aided equipment and a wide variety of software available at the Institute; e.g. for strength measurement, navigation, robotics, aerodynamics, fault detection and crash-test performance. acquisition systems, specialized systems for data statistical analysis. The training capabilities, e.g., providing students and engineers with the knowledge on most advanced professional CAD/CAM/CAE systems; like Unigraphics, Madymo, Adams, Ansys, Fluent, Catia and Proengineer should be emphasized as well. The Institute has also expanded a regular fruitful international co-operation, based on agreements signed with foreign universities and institutes and as part of multinational projects. For the last years the European programs, especially the 6-th and 7-th Framework Programs of the European Commission, have offered a unique opportunity for finding new sources of funds. The Institute has involved a considerable part of its capacity into the process of preparing projects - in 7 projects we are now engaged in.