Abstract : — A key requirement for effective control of quadro-tor vehicles is estimation of both attitude and linear velocity. Recent work has demonstrated that it is possible to measure horizontal velocities of a quadrotor vehicle from strap-down ac-celerometers along with a system model. In this paper we extend this to full body-fixed-frame velocity measurement by exploiting recent work in aerodynamic modeling of rotor performance and measurements of mechanical power supplied to the rotor hub. We use these measurements in a combined attitude and velocity nonlinear observer design to jointly estimate attitude and body-fixed-frame linear velocity. Almost global asymptotic stability of the resulting system is demonstrated using Lyapunov analysis of the resulting error system. In the current work, we ignore bias and leave it for future work. The performance of the observer is verified by simulation results.