Analytic models predict the possibility of extending the range of performance parameters of Pulsed Plasma Thrusters (PPT) by using propellants other than the traditionally used Teflon. A theoretical and experimental effort was initiated at The Ohio State University to investigate the use of alternative propellants for PPT. Analytical and numerical calculations (MACH2) indeed indicate a significant broadening of the obtainable range of specific impulse and thrust-to-power ratios when alternative propellants such as lithium or water are utilized. Consequently, in an effort to investigate changes in physical phenomena and thruster performance experimentally, a hybrid thruster was designed and built, facilitating the use of alternatively water or Teflon. The thruster design includes a unique water propellant feed system, allowing the supply of the water propellant without detrimentally affecting the inherent simplicity of the PPT system. The thruster operation and performance was investigated by several different diagnostic methods, including current and voltage measurements, Langmuir probes, and magnetic field probes. Furthermore, impact pressure measurements in the plume of the thruster allowed new insight into the plume structure and the accurate evaluation of impulse bits. Employment of the diagnostic methods for Teflon and water propellant enabled the unambiguous identification of propellant related effects such as reduced electron temperature and higher exhaust velocities in the case of water propellant.