B737 Next Generation Undifferentiated
Flight Crew Multiengine; Flight Crew Instrument; Flight Crew Air Transport Pilot (ATP)
Flight Crew Last 90 Days 172; Flight Crew Type 3933
Aircraft Equipment Problem Critical
Air Traffic Control Issued Advisory / Alert; Air Traffic Control Issued New Clearance; Flight Crew Landed As Precaution; Flight Crew Requested ATC Assistance / Clarification; Flight Crew Returned To Departure Airport; General Maintenance Action
Aircraft
At rotate speed and immediately after liftoff a loud banging was heard and felt. We both suspected a blown tire but then I noticed the number 1 engine had 'redlined' at about that same moment ATC Tower called and said 'your engine is on fire.' I then realized we were experiencing a compressor stall/engine surge and I pulled the power back on the number 1 engine and then took control of the aircraft. We continued the special engine out procedure with a left turn and continued climb. The FO (First Officer) initiated the engine failure/damage check list. It was determine by us both that the engine had not failed and was not severely damaged so we elected the leave it running. We were informed the airspace had been cleared and we could return for landing whenever we wanted. We continued the engine out departure and climbed to a safe altitude. I transferred controls to the FO while I briefed the Flight Attendants and then the passengers. We then set up for a visual approach backed up by the RNAV. I took the controls back and we made a normal flaps 40 (overweight) landing. After we came to a stop we shutdown the number 1 engine and Airport fire rescue inspected the aircraft and tires for damage. We then proceeded to a remote parking spot for passenger deplaning. Maintenance log entries were completed.
[Report narrative contained no additional information.]
B737NG flight crew reported returning to departure airport after experiencing Number 1 engine compressor stall and surge.