An efficient compact nuclear fusion reactor for use as a neutron source or energy source is described. The reactor comprises a toroidal plasma chamber and a plasma confinement system arranged to generate a magnetic field for confining a plasma in the chamber. The plasma confinement system is configured so that a major radius of the confined plasma is 1.5m or less. The reactor is constructed using high temperature superconducting toroidal magnets, which may be operated at low temperature (77K or lower) to provide enhanced performance. The toroidal magnetic field can be increased to 5T or more giving significant increases in fusion output, so that neutron output is very efficient and the reactor can produce a net output of energy.