In this study, the nodal thermodynamic and dynamic analysis of an alpha type Stirling engine driven by Scotchyoke mechanism is presented. The nodal thermodynamic section of the analysis is performed via 15 nodal volumes. The temperature variations in nodal volumes are calculated by means of the first law of the thermodynamics given for the open systems. The pressures in all of the nodal volumes are assumed to be equal and calculated via Schmidt relation. The momentary masses in nodal volumes are calculated via the perfect gas relation. The dynamic section of the analysis involves the motion equations of pistons and crankshaft. The motion equations are derived by means of the Newton method. In the derivation of the motion equations of pistons, the working fluid forces and friction forces are considered beside the inertia forces. In the derivation of motion equation of the crankshaft, moments of working fluid forces, moments of friction forces, the moment of external load and the moment of starter motor are considered as well as mass inertia moments. It is estimated that an engine having 1.8 L swept volume, 1000 K hot end temperature, 400 K cold end temperature, 3000 cm(2) total inner heat transfer area, 5.1 bar charge pressure and 2000 W/m(2) K inner heat transfer coefficient is capable of producing a shaft power above 2 kW. For these inputs and shaft power; the speed, speed fluctuation and torque are optimized as 138 rad/s, 16% and 14.9 N m respectively. The presented analysis is useful for engine development studies.