A novel micro thermoelectric power generation module directly heated with localized catalytic combustion has been proposed. Arrays of high-temperature plate-type thermoelectric generator (TEG) elements, of which the hot junction is directly heated by exothermic catalytic oxidation of hydrocarbon fuel, are designed. Heat losses caused by heat conduction through the TEG element are recovered by the convection effect with unburned mixture flows. Catalyst layers were prepared by impregnating Pd or Pt catalyst on porous Al2O3 supports coated by using the suspension plasma spray. A series of one-dimensional numerical analyses considering the catalytic combustion in addition to the conductive and convective heat transfer were made to examine the temperature field of the TEG module and to investigate how various parameters affect the convection effect. A model combustor using quartz plates was developed, which mimics the temperature fields of the SiGe TEG module. It is found that, with the aid of the convection effect, temperature differences over 700 °C between the hot/cold junctions can be achieved, while the unreacted fuel concentration is less than 10%. Finally, 40 mm-long Ni-based alloy TEG elements have been fabricated using laser cutting and spot welding techniques, which ensure high operating temperatures and reliability. In a power generation demonstration using butane as a fuel, an open circuit voltage of 0.64 V has been obtained from a single TEG module with a peak output power and a power generation density as high as 10.1 mW and 10.8 kW/m3, respectively.