A compact 5 mm disk type plasma thruster simply composed of only a set of antenna windings and bias field coil which produces significant thrust of 0.74 mN with rotating magnetic field has been proposed and successfully developed for future applications to low altitude nanosatellites. The key technology issue is that the rotating speed is set above the ion plasma frequency but far below the electron plasma frequency, in order to produce the electron drag current and axial electric field as a consequence of the interaction with the bias field. The formation of axial electric field was confirmed and the produced plasma density was > 6 x 10(exp 18) m(exp -3), whereas the power consumption is 500 W in the inductively coupled mode of operation. The anticipated thrust density and specific thrust could potentially be extended to 7.64 Nm(exp -2) and 850 s, respectively, which is comparable to conventional Hall effect thrusters.