A tiltrotor aircraft has a fuselage and a wing having upper and lower surfaces with a plurality of channels extending therebetween, each with a cycloidal rotor mounted therein. At least two pylon assemblies are rotatably coupled to the wing to selectively operate the tiltrotor aircraft between helicopter and airplane flight modes. Each pylon assembly includes a mast and a proprotor assembly operable to rotate with the mast to generate thrust. At least one engine provides torque and rotational energy to the proprotor assemblies and the propulsion assemblies. Each of the cycloidal rotors has a plurality of blades that travels in a generally circular path and has a plurality of pitch angle configurations such that each cycloidal rotor is operable to generate a variable thrust and a variable thrust vector, thereby providing vertical lift augmentation, roll control, yaw control and/or pitch control in the helicopter flight mode.