A mathematical model for the overall thermal efficiency of the solar-powered high temperature differential dish-Stirling engine with finite-rate heat transfer, regenerative heat losses, conductive thermal bridging losses and finite regeneration processes time is developed. The model takes into consideration the effect of the absorber temperature and the concentrating ratio on the thermal efficiency; radiation and convection heat transfer between the absorber and the working fluid as well as convection heat transfer between the heat sink and the working fluid. The results show that the optimized absorber temperature and concentrating ratio are at about 1100 K and 1300, respectively. The thermal efficiency at optimized condition is about 34%, which is not far away from the corresponding Carnot efficiency at about 50%. Hence, the present analysis provides a new theoretical guidance for designing dish collectors and operating the Stirling heat engine system. (C) 2010 Elsevier Ltd. All rights reserved.