The rocket company owned by Amazon founder Jeff Bezos failed on its first launch – with an escape system that brought the crew compartment to safety.
The image shows flames shooting out of a flying engine for about a minute and bullets coming from a rocket arrow.
It then landed in the Texan Desert supported by three parachutes.
Monday’s mission was crewless and included dozens of experiments, but was the same system used to launch humans to the edge of space.
Blue origin said the “capsule exit system worked as designed” after the turbocharger failed on its New Shepard rocket.
Video released by the company shows the impact of the capsule but not the fate of the rocket, which is cruising around 700mph at about 28,000ft (8,500m).
The commentary on the launch was silent when the incident occurred, with the final announcer saying: “Looks like we experienced an anomaly with today’s flight. This was not the plan.”
Rockets often land themselves vertically so they can be used on future flights.
The FAA, the US aviation watchdog, landed the missile pending an investigation.
It was the company’s 23rd mission and Mr. Bezos performed its first crewed mission last year.
Thirty-one people, including Star Trek actor William Shatnerwent on a rocket and the last paid flight was last month.
Blue Origin, Richard Branson’s Virgin Galactic, and Elon Musk’s SpaceX are all competing in the emerging space tourism sector.