Electricity generation and emission characteristics during the poultry litter and natural gas co-combustion process has rarely been studied. In this study, a Stirling engine was successfully integrated into the existing lab-scale swirling fluidized bed combustion system in order to further investigate the poultry litter and natural gas co-combustion process. Electricity, gaseous emissions, particulate matter (PM), and fly ash composition were analyzed under various operating conditions. Results indicated that the electricity reached 905 W under a water flow rate of 13.1 L/min and an engine head temperature of 584 °C. It was found that excess air (EA) ratios between 0.79 and 1.08 can relatively produce more electricity with lower emissions. At a secondary air (SA) height of 850 mm, secondary air/total air (SA/TA) ratios between 0.22 and 0.44 may significantly reduce NOx and CO emissions. By increasing the mixing ratio (MR), SO2 was reduced while NOx increased at the beginning of co-combustion process but then decreased again. Additionally, PM results were lower than Maryland emissions standards. The fly ash results showed a higher nutrient content (close to 16%). This study shows the possibility of using poultry litter as a sustainable energy source for energy production while emitting lower emissions in the small decentralized combustion system