Autonomous micro flying robots combine a large variety of technological challenges and are therefore an excellent showcase for leading edge micro/nano technologies and their integration with information technology towards a fully operational intelligent micro-system. Therefore, the muFly project proposes the development and implementation of the first fully autonomous micro helicopter comparable in size and weight to a small bird. The key challenges of the project include innovative concepts for power sources, sensors, actuators, navigation and helicopter design and their integration into a very compact system. The envisaged fully autonomous micro-helicopter will weight less than 30g and measure only 10cm in diameter. MuFly is a STREP project under the Sixth Framework Programme of the European Commission.