The SpaceX Mars-bound SN10 has erupted into flames minutes after its successful landing.
SN10 is the third prototype of Starship, Elon Musk's next-generation rocket.
The Starship is designed to one day become a reusable transport system that can carry up to 100 people to Mars.
Last month an earlier version of the prototype, the SN9, flew high and then crash-landed before exploding in a fireball during an attempted test flight landing.
Footage captured the craft burning up and plummeting to the ground during the high-altitude flight test in the US.
On Wednesday SpaceX was attempting another flight test of the Mars-bound spacecraft, before it lifted off to 10km.
It successfully landed at the Boca Chica facility in Texas, achieving its goal.
But about eight minutes after landing SN10 blew up while it was on the landing pad.
There were no passengers onboard the rocket, and it flies autonomously.
Despite the explosion, the high-altitude flight test is an improvement for Musk’s Mars ambitions.
Previously, another of the company’s prototype rockets, the SN8, was destroyed in a similar explosion in December.
The company’s CEO Elon Musk wants to fly humans and cargo to Mars as part of the Starship programme.
Last month, SpaceX said it will offer the "first all-civilian" flight into the Earth's orbit later this year.
American businessman Jared Isaacman, 37, who made billions in the credit card industry, has chartered the monumental flight.
No astronauts will be involved in the flight, which will be a "multi-day journey”.
Mr Isaacman has donated the three remaining seats to "to crew members who will be selected to represent the mission pillars of leadership, hope, generosity and prosperity”.
