The ignition and flame propagation in an axisymmetric supersonic combustor were investigated. The laser-induced plasma was employed to ignite the supersonic inflow with a speed of Mach 2.5 and a total temperature of 1486 K. A direct-connect axisymmetric model scramjet with a fully transparent glass combustor was built, which enabled the circumferential and axial flame propagation in the cavity-based axisymmetric supersonic combustor to be visualized by the high-speed photography from the endoscopic and external views, respectively. An initial flame kernel is produced by the laser-induced plasma and propagates to the cavity leading edge along the axial direction. The establishment of the cavity shear-layer flame facilitates circumferential flame propagation. The circumferential flame propagation is coupled with the axial propagation, eventually generating a loop-shaped flame with a central-hole. Acceleration of the flame propagation can be observed, especially when the global equivalence ratio is increased. A plausible explanation for the flame propagation in the axisymmetric supersonic combustor was found using URANS numerical simulation. The axisymmetric cavity generates a low-speed loop-shaped recirculation region and thickened cavity shear-layer with an appropriate local equivalence ratio, resulting in the simultaneous axial and circumferential flame propagation. The increased temperature in the cavity and the thickened cavity shear-layer during the flame propagation produce a more intense heat release and mass transfer, leading to faster flame propagation.