In this study, a gamma type Stirling engine with 276 cc swept volume was designed and manufactured. The engine was tested with air and helium by using an electrical furnace as heat source. Working characteristics of the engine were obtained within the range of heat source temperature 700-1000 degreesC and range of charge pressure 1-4.5 bar. Maximum power output was obtained with helium at 1000 degreesC heat source temperature and 4 bar charge pressure as 128.3 W. The maximum torque was obtained as 2 N m at 1000 degreesC heat source temperature and 4 bar helium charge pressure. Results were found to be encouraging to initiate a Stirling engine project for 1 kW power output. (C) 2004 Elsevier Ltd. All rights reserved.