An air-cooled engine includes a cylinder provided with a plurality of cooling fins at an outer peripheral surface of the cylinder, a cooling fan, a cylinder cover covering the cylinder, an air guide plate, and an air guide portion. The air guide plate is positioned between an inner surface of the cylinder cover and the fins. The cooling fan generates cooling air stream for cooling the cylinder, and the air guide plate is configured to guide the cooling air stream to flow through a space between the inner surface of the cylinder cover and the fins. A first small space is defined between the air guide plate and the inner surface of the cylinder cover. The air guide portion covers at least a part of the first small space at an upstream side of the air guide plate in the axial direction of the drive shaft.