SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                                    FORM 8-K

                                 CURRENT REPORT

                         PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


Date of Report (Date of earliest event reported):     October 17, 2002
                                                  ------------------------------

                         Aero Systems Engineering, Inc.
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             (Exact name of registrant as specified in its charter)


         Minnesota                      0-7390                   41-0913117
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(State or other jurisdiction          (Commission             (I.R.S. Employer
     of incorporation)                File Number)           Identification No.)


358 E. Fillmore Avenue, St. Paul, Minnesota                        55107
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(Address of principal executive offices)                        (Zip Code)


Registrant's telephone number, including area code:  (651) 227-7515
                                                     ---------------------------

                                Not applicable.
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         (Former name or former address, if changed since last report.)










                         AERO SYSTEMS ENGINEERING, INC.

                                      INDEX
                                       TO
                                 CURRENT REPORT
                                       ON
                                    FORM 8-K



Item Number                                                                                    Page
-----------                                                                                    ----
                                                                                         
Item 5.  Other Events.                                                                           3

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.                      3



Signatures.                                                                                      3

Exhibits Index.                                                                                  4




           (The remainder of this page was intentionally left blank.)






                                       2




ITEM 5. OTHER EVENTS.

         On October 17, 2002, Aero Systems Engineering, Inc. issued a press
         release regarding an agreement in which Goldsmith Agio Helms will be
         retained to assist the Company in exploring strategic alternatives. A
         copy of the press release is filed herewith as Exhibit 99.1 and
         incorporated herein by reference.


ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

        (a)      Not required.

        (b)      Not required.

        (c)      The following exhibit is being filed as part of this Current
                 Report on Form 8-K:

                 99.1 Press release dated October 17, 2002




SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


Dated:  October 17, 2002                  Aero Systems Engineering, Inc.


                                          By: /s/ Steven R. Hedberg
                                              ----------------------------------
                                              Steven R. Hedberg
                                              Chief Financial Officer





                                       3











                                  EXHIBIT INDEX




Exhibit Number                    Description
--------------                    ----------------------
                               
99.1                              Press Release Dated October 17, 2002







                                       4