A thermodynamic model has been developed to evaluate exergy transfer and its destruction in the process of premixed combustion in a heat recirculating micro combustor. Exergy destruction caused by process irreversibilities is characterized by entropy generation in the process. The entropy transport equation along with the solution of temperature and species concentration fields in the wake of flame sheet assumptions have been used to determine the different components of entropy generation. The role of thermal conductivity and thickness of combustor wall, and Peclet number on transfer and destruction rate of exergy is depicted in the process of flame stabilization via heat recirculation. The entropy generations due to gas phase heat conduction and chemical reaction are identified as the major sources of exergy destruction. The total irreversibility in pre-flame region is confined only within a small distance upstream of the flame. It has been observed that the local volumetric entropy generation is higher near the axis than that near the combustor wall. The second law efficiency is almost invariant with heat loss from the combustor, Peclet number, and thermal conductivity and thickness of combustor wall. (c) 2014 Elsevier Ltd. All rights reserved.