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From The Collaborative International Dictionary of English v.0.48:
Nacelle \Na*celle"\ (n[.a]*s[e^]l"), n. [F.] 1. A small boat. [Obs.] [Webster 1913 Suppl.] 2. The basket suspended from a balloon; hence, the framework forming the body of a dirigible balloon, and containing the machinery, passengers, etc. [Webster 1913 Suppl.] 3. A streamlined enclosure on an airplane, as for the engine or for the cargo or passengers; -- formerly used to refer to the boatlike, inclosed body of an airplane which is usually now called the fuselage, and now referring mostly to the enclosure for the engine. [Webster 1913 Suppl. +PJC]