SUMMARY In this study, a gamma-type low temperature differential Stirling engine was designed and manufactured. The displacer and piston of the engine were concentrically situated to each other. The engine was tested by using a liquefied petroleum gas burner at laboratory conditions. The working fluid was ambient air at atmospheric pressure. Test procedure intended to investigate the speed-torque and speed-power characteristics of the engine depending on the hot-end temperature. Two different displacers made of aluminum alloy and medium density fiberboard were used. The maximum torque and power obtained were 0.166 Nm at 125 rpm speed and 3.06 W at 215 rpm speed, respectively, at 160 °C hot-end temperature with medium density fiberboard displacer. Copyright © 2011 John Wiley & Sons, Ltd.