A pellet stove having a combustion assembly housing. Located within the housing in a vertical array are a primary combustion chamber, a secondary combustion chamber located below the primary combustion chamber, and an ash receptacle located below the secondary combustion chamber. The primary combustion chamber communicates with the secondary combustion chamber, and the secondary combustion chamber communicates with the ash receptacle. A pellet feed housing is located above the primary combustion chamber and has a feed plate configured to feed pellets directly into the primary combustion chamber along an inclined path. Air intake ducts communicate ambient air with the interior of the housing. The primary combustion chamber communicates with a combustion gas conduit that conducts combustion gases along an upwardly extending tortuous path to an exhaust stack to provide heating. A pivotal, latchable door is attached to the front of the combustion assembly housing.