For many decades all major conservation bodies have realized the need to conserve our valuable fuel and power sources. The increased level of consumption of fuel and power results in carbon-di-oxide emissions to environment which results in the depletion of ozone layer leading to global warming. As a result, many ways of utilizing renewable fuel and power sources are developing with solar energy and waste heat recovery applications. Most of the process and industries have large capacity Diesel Generating (DG) set. The exhaust gas of such a DG set carries a lot of heat and it goes waste if it is not utilized properly. Energy recovery from engine exhaust is one of the energy saving methods in engines. By using energy recovery techniques, waste heat energy can be saved, emissions can be reduced and thermal efficiency of the engine is increased. This paper discusses about the exhaust gas energy recovery from engine exhaust using Rankine cycle and thermodynamic properties of the working fluids. The heat energy recovered from the engine exhaust can be utilized for various sources.