The paper presents results of plasma assisted combustion experiments using high-voltage, nanosecond pulse duration, high pulse repetition rate discharge and kinetic modeling calculations. In the experiments, two different operation regimes have been identified, (i) oxidation regime with relatively low fuel fractions oxidized in the absence of visible flame, and (ii) ignition regime, with large fuel fraction burned, large amounts of CO and CO₂ generated, and flame detected in the reactor. Ignition occurred at air flow temperatures as low as 300°C (before adding fuel). In both regimes, significant plasma temperature rise is detected in air–fuel flows, up to ΔT=300°C. Comparing these results with temperatures and dissociated fuel fractions in nitrogen–fuel flows demonstrates that the temperature rise in air–fuel flows is due to exothermic plasma chemical fuel oxidation process, which results in ignition when the flow temperature approaches autoignition temperature. This conclusion was confirmed by kinetic modeling calculations, which also demonstrated that ignition temperature is significantly reduced by the presence of radicals in the flow. Calculations showed that the model correctly predicts oxidized fuel fractions and resultant temperature rise in the plasma in the oxidation regime but significantly overpredicts burned fuel fractions in the ignition regime. Transition from the oxidation to the ignition regime predicted by the model is consistent with the experiment. Finally, the model poorly predicts some product species concentrations (CO₂, CH₂O, and C₂H₂), even in the oxidation regime. Comparison of product species concentrations predicted utilizing two widely used hydrocarbon reaction mechanisms showed significant differences. Since these mechanisms have not been validated at near-room temperatures, this suggests that they may be inapplicable at the present conditions. This demonstrates the need for development of an accurate low-temperature plasma chemical fuel oxidation reaction mechanism.