Operation of a microturbine was simulated on the basis of component characteristic parameters obtained from performance test. Characteristic parameters, such as compressor and turbine efficiencies, recuperator effectiveness as well as turbine inlet temperature, were obtained for a wide operation range. Component characteristics including performance maps and characteristic curves were generated using measured data. Based on the component characteristics, a simulation program was constructed and operation of the microturbine was simulated, and the simulated results were compared with the measured data to verify the program. Also, influence of variation in the power control scheme on the operating characteristic and performance of the engine was simulated. The simulation program can be used for predicting operation of both healthy and degraded engine conditions.