This paper presents a branch prediction algorithm and a 4-way set-associative cache for performance improvement of an embedded RISC core and a clock-gating algorithm with observability don’t care (ODC) operation to reduce the power consumption of the core. The branch prediction algorithm has a structure using a branch target buffer (BTB) and 4-way set associative cache that has a lower miss rate than a direct-mapped cache. Pseudo-least recently used (LRU) policy is used for reducing the number of LRU bits. The clock-gating algorithm reduces dynamic power consumption. As a result of estimation of the performance and the dynamic power, the performance of the OpenRISC core applied to the proposed architecture is improved about 29% and the dynamic power of the core with the Chartered 0.18 ${mu}m$ technology library is reduced by 16%.