Nuclear energy has found many applications in space projects. This article deals with these applications. The first application is the use of nuclear energy for the production of electricity in space and the second main application is the use of nuclear energy for propulsion purposes in space flight. The main objective is to develop a 75000 pound thrust flight engine called NERVA by heating liquid hydrogen in a nuclear reactor. The paper describes in detail the salient features of the NERVA rocket as well as its comparison with the conventional chemical rockets. It is shown that a nuclear rocket using liquid hydrogen as medium is at least 85% more efficient as compared with the chemical rockets such as those used for the APOLLO moon flight.