Like the ADC Cirrus, the Gipsy was born as a collaboration between aircraft manufacturer Geoffrey de Havilland and engine designer Frank Halford.

The origins and early history of both the Cirrus and Gipsy series of engines were linked through de Havilland's D.H.60 Moth.

By 1927 however, the Moth threatened to become a victim of its own success as continuing demand was depleting the stockpiles of surplus Renaults needed to build its Cirrus engine.

The Moth now having provided a solid financial cushion, de Havilland Aircraft decided to take the problem head-on and start its own engine factory.

Geoffrey de Havilland again went to his old friend Halford and this time asked him to design a completely new aircraft engine of weight and performance comparable to the latest version of the Cirrus.

Like the Cirrus, the new Gipsy was an air-cooled four-cylinder in-line engine weighing a mere 300 pounds and rated at 98 hp (73 kW) at 2,100 rpm.

The new engine proved itself to be docile, easy to maintain and, as demonstrated in many long distance flights by the new Gipsy Moth, reliable.

The solution came as several pilots boasted that they would be able to fly their Moth upside down for as long as they wanted if it were not for the carburettor and fuel tank now being inverted.