A plasma electrothermal thruster includes a capillary passage in which a plasma discharge is formed and directed out of an open end of the passage into a supersonic nozzle. Liquid supplied to the capillary passage becomes partially atomized to cool a confining surface of the passage. The plasma discharge is formed as the atomized liquid flows out of the open end into a supersonic equilibrium nozzle. The discharge can have a duration greater than the two way travel time of acoustic energy in the capillary to cause the plasma to flow continuously through the nozzle during the time of the discharge pulse