Efficient engine technologies to convert low-grade heat to electricity are urgently desired. In this work, a conceptual structure of engine for a novel cycle or one-way oscillating flow cycle (OOFC), which consists of two isochoric and two adiabatic processes, is described for low-grade heat utilization. Characteristics of OOFC allows for the working fluid temperature glide to be matched to the decrease in temperature of low-grade heat. Then, thermodynamic model is developed for evaluating the performance. Theoretical simulation results show that maximum specific output works are in the range of 12.2 kJ kg−1 – 79.7 kJ kg−1. Compared to Stirling cycle system, maximum specific output work in OOFC system could be improved by 16.2 %–24.8 %. Compared to ideal Carnot cycle engine system, maximum specific output works in OOFC system is nearly the same and 1.8 %–2.6 % lower. As Carnot cycle engine is ideal while thermodynamic cycle loss and heat transfer loss in cold heat exchangers are considered in OOFC engine, the ratios of maximum specific output work demonstrate that OOFC system could be very promising for low-grade heat utilization as a result of well-matched temperature profile in hot heat exchanger.