JAERI is conducting R&D on the power conversion system of the GTHTR300 plant, in parallel with plant design work. The design of the power conversion system is based on a regenerative, non-intercooled, closed Brayton cycle with helium gas as the working fluid. A single-shaft, axial-flow turbo-compressor and a directly coupled electric generator run on magnetic bearings. Major R&D issues for the power conversion system are aerodynamic performance of the helium gas compressor, high load capacity magnetic bearings and performance of magnetic bearing supported rotor, and operability and controllability of the closed-cycle gas turbine system. Three test plans were set up to address theses issues, aiming at verifying the design of the GTHTR300 power conversion system and establishing key technologies of a closed-cycle helium gas turbine system. The compressor aerodynamic performance test is aiming at verifying the aerodynamic performance and design method of the helium compressor. A 1/3-scale, four-stage compressor test model and a helium gas loop were designed and fabricated. The model was designed to simulate the repeating stage flow, and at the same time have satisfactorily high machining precision, Reynolds number and measurement accuracy. The helium gas operating pressure is varied to investigate the effects of the Reynolds number on the efficiency and surge margin. Two sets of blades were fabricated to evaluate the effects of the end-wall over-camber angle. Test results will provide the basis for further improvement in the GTHTR300 compressor design. The magnetic bearing development test is aiming at developing the technology of the magnetic bearing supported rotor system. The test rig composed of 1/3-scale turbo-compressor and generator rotor models that are connected together by a flexible coupling. Each rotor models are supported by two radial magnetic bearings with a high load capacity that is about 1/10 of the GTHTR300 design. The rotor models were designed so that both the critical speeds and vibration modes are matched to those of the actual rotors. A 1/3-scale test model of a turbo-machine rotor system and magnetic bearings were designed and fabrication of the test model was started. Testing of magnetic bearing performance, unbalance response, stability, and auxiliary bearing reliability will be carried out together with development of advanced control method in the program. The test will validate the design methods of the rotor system and magnetic bearing control system. The test will verify the rotor design of GTHTR300 and the results will identify technical issues in scaling up of magnetic bearings. The gas-turbine system operation and control test is aiming to demonstrate operability and controllability of the closed-cycle gas-turbine system. Preliminary design was made for the test facility that is an integrated scaled model of the GTHTR300 power conversion system. Pressurized helium gas at around 1 MPa is used as the working fluid, and an electric heater simulates the reactor. Planned test modes are normal operation, start-up, shutdown, load change, loss of load, and emergency shutdown. Specifications of the system operation and control were defined to fulfill the test requirements. The test will verify the design of the GTHTR300 control system and establish the operation and control method. Development and verification of a plant dynamics analysis code will be made based on the test results. Major components of the facility, such as a turbine, a heater, a recuperator, and a pre-cooler, were designed to meet the specifications. Preliminary transient analyses were made for the test facility design. It was confirmed from the results of the analyses that the test facility can be operated to meet the requirements of the test plan and controlled satisfactorily. A revision of the design is underway for purposes of the reduction in the power demands and the improvement in the control system. These scaled tests will surely validate the GTHTR300 power conversion system design and the results will be incorporated in the design in the upgrading stage. The R&D program as a whole will well demonstrate the technical feasibility of the high-efficiency gas-turbine system for high-temperature gas-cooled reactor plants.