The Terrafugia Transition car debuted at the EAA AirVenture air show in Oshkosh, Wisconsin on Monday afternoon.
The car flew for 10 minutes, landed, folded up its wings and drove down the runway (video below).
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The flying car will likely cost $279,000, but won't be available until 2015 or '16.
Terrafugia hopes to sell the car to pilots who want to avoid being grounded by bad weather or have difficulty getting a car ride after they land.
"It's the convenience of having your car and plane in one package. It's the next 'wow' car," Richard Gersh, Terrafugia vice president of business development, told the Milwaukee-Wisconsin Journal Sentinel.
"We don't know the market yet. A lot of people are waiting to see it fly, but if you see one flying, that's the best advertising," added Gersh.
The Terrafugia Transition includes specially-designed wings that fold up next to the car, which allows it to travel down the highway and park in a normal garage (no more renting hangar space).
The car-plane can fly at 100 mph for 410 miles with half an hour of reserve fuel. Back on the ground, it can travel up to 65 mph and get 35 miles per gallon. For flying and driving, it uses normal unleaded gas, not expensive aviation fuel.
Source: Milwaukee-Wisconsin Journal Sentinel