Performance analysis of a 50KW turbo-generator gas turbine engine with a recuperator was studied. Recuperated cycle has been employed to meet maximum fuel economy and ultra low emissions especially for military and vehicular engines. From thermodynamic stand point, it is known that recuperative cycle can contribute most to enhance thermal cycle efficiency for the Pressure ratios under 10 and of comparatively low turbine inlet temperature. Efficiency of a simple cycle with a recuperator increases relatively about 30% than without one at effectiveness of 0.5. Pressure losses in the heat exchanger less than 5.2% is considered in the design process. A tubular type heat exchanger is selected for this particular engine because it can provide simple construction as well as structural sturdiness and excellent leak tightness.