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A fire-year research project â€œFire Dynamics and Fundamentals of Fire Protectionâ€ (2002- 2007) has been sponsored by the China NKBRSF (National Key Basic Research Special Funds), in order to gain deep understandings of natural fire phenomena and whereby facilitate the development of practical fire safety design/engineering, management and firefighting technologies. The project has been carried out for more than two years since 2002, with successful establishment of a multidisciplinary collaboration network of most famous China universities and institutions in the field of fundamental fire research. This review summarizes the new significant progress of the project during 2002-2004. A prospect of fundamental fire research in China is also presented.