An indigenous Wankel Rotary Engine of 40 kW class has been developed for Unmanned Aerial Vehicle (UAV) application. It should be capable of flying flawlessly for long duration at designated altitude and carrying the payload intended for the mission. The engine has to withstand high shock loads during launching from a mobile launcher and has to climb to the designated altitude within a specified time. To meet these requirements the engine needs to deliver required power while operating at its maximum speed during take-off and climb. Therefore qualification of a Wankel rotary engine for this type of application is a great challenge and needs thorough study of its component durability and engine performance and reliability. This paper presents the various qualification tests stipulated on the components, systems and on engine to establish its performance, integrity and reliability. The paper also highlights the basis of clearing the engine for its first flight. Engine made its maiden flight successfully on an UAV platform exhibiting satisfactory performance.