Recent developments of a stellarator-mirror (SM) fission–fusion hybrid concept are reviewed. The hybrid consists of a fusion neutron source and a powerful sub-critical fast fission reactor core. The aim is transmutation of spent nuclear fuel and safe fission energy production. In its fusion part, a stellarator-type system with an embedded magnetic mirror is used. The stellarator confines deuterium plasma with moderate temperature, 1–2 keV. In the magnetic mirror, a hot component of sloshing tritium ions is trapped. There, the fusion neutrons are generated.A candidate for a combined SM system is a DRACON magnetic trap. A basic idea behind an SM device is to maintain local neutron production in a mirror part, but at the same time eliminate the end losses by using a toroidal device. A possible drawback is that the stellarator part can introduce collision-free radial drift losses, which is the main topic for this study. For high energy ions of tritium with an energy of 70 keV, comparative computations of collisionless losses in the rectilinear part of a specific design of the DRACON type trap are carried out. Two versions of the trap are considered with different lengths of the rectilinear sections. Also the total number of current-carrying rings in the magnetic system is varied. The results predict that high energy ions from neutral beam injection can be satisfactorily confined in the mirror part during 0.1–1 s.The Uragan-2M experimental device is used to check key points of the SM concept. The magnetic configuration of a stellarator with an embedded magnetic mirror is arranged in this device by switching off one toroidal coil. The motion of particles magnetically trapped in the embedded mirror is analyzed numerically with use of motional invariants. It is found that without radial electric field particles quickly drift out of the SM, even if the particles initially are located on a nested magnetic surface. We will show that a weak radial electric field, which would be spontaneously created by the ambipolar radial particle losses, can make drift trajectories closed, which substantially improves particle confinement. It is remarkable that the improvement acts both for positive and negative charges.