The potential of laminar flow nacelles for reducing installed engine/nacelle drag was studied. The purpose was twofold: to experimentally verify a method for designing laminar flow nacelles and to determine the effect of installation on the extent of laminar flow on the nacelle and on the nacelle pressure distributions. The results of the isolated nacelle tests illustrated that laminar flow could be maintained over the desired length. Installing the nacelles on wing/pylon did not alter the extent of laminar flow occurring on the nacelles. The results illustrated that a significant drag reduction was achieved with this laminar flow design. Further drag reduction could be obtained with proper nacelle location and pylon contouring.