In the present study, an annular combustor for a 500 W class micro gas turbine generator was designed and its characteristics were investigated by using both numerical and experimental methods. For this purpose, geometrical configurations of the annular combustor were determined in the aspect of the aerodynamic and chemical consideration. Also, fluid flow and pressure drop characteristics in the combustor were numerically studied by using commercial tool, FLUENT. Based on the numerical results, the diameter and the angle of air admission holes in the primary zone were chosen to be 2.5 mm and $30^{circ}$, respectively. Finally, an integrated test unit, which consisted of a compressor, combustor, turbine, and motor/generator, was developed in order to measure the combustor efficiency. As the temperature difference between the combustor inlet and the turbine inlet or the air mass flow rate increased, the combustor efficiency increased and it was over 90% when the air mass flow rate was larger than 7.30 g/s. It was shown that the annular combustor developed in this study met the design requirement for a 500 W class micro gas turbine generator.