This paper presents a method for the design of twin screw compressors and expanders, which is based on a differential algorithm for defining the rotor profile and an analytical model of the fluid flow and thermodynamic processes within the machine. Part I of the paper presents a method for screw rotor profile generation which simplifies and improves design procedures. An example is given of its use in the development of a new “N” rotor profile, which is shown to be superior to other well-known types. Part II describes a numerical model of the thermodynamic and fluid flow processes within screw machines, which is valid for both the compressor and expander modes of operation. It includes the use of the equations of conservation of mass and energy applied to an instantaneous control volume of trapped fluid within the machine with allowance for fluid leakage, oil or other fluid injection, heat transfer, and the assumption of real fluid properties. By simultaneous solution of these equations, pressure-volume diagrams may be derived of the entire compression or expansions, process within the machine. The procedure has been developed over a period of fifteen years and validated with experimental results obtained from both reciprocating and screw compressors and screw expanders, some of which are included. The rotor profile generation processor, thermofluid solver and optimizer, together with preprocessing facilities for the input data and graphical post-processing and CAD interface, have been incorporated into a design package which provided a suitable tool for analysis and optimization of twin screw machine design. An example of its use is given in the optimization of the gate tip radius of a selected compressor design.