The search for an engine cycle with high efficiency, multi-sources of energy and less pollution has led to reconsideration of the Stirling cycle. Several engine prototypes were designed but their performances remain relatively weak when compared with other types of combustion engines. In order to increase their performances and analyze their operations, a numerical simulation model taking into account thermal losses has been developed and used, in this paper, to optimize the engine performance. This model has been tested using the experimental data obtained from the General Motor GPU-3 Stirling engine prototype. A good correlation between experimental data and model prediction has been found. The model has also been used to investigate the influence of geometrical and physical parameters on the Stirling engine performance and to determine the optimal parameters for an acceptable operational gas pressure. (C) 2007 Elsevier Ltd. All rights reserved.