The optimal exergy-based ecological performance of a generalized irreversible Carnot-engine with losses due to heat-resistance, heat leakage and internal irreversibility, in which the heat-transfer between the working fluid and the heat reservoirs obeys a linear phenomenological heat-transfer law, is derived by taking an exergy-based ecological optimization criterion as the objective. This consists of maximizing a function representing the best compromise between the power output and entropy-production rate of the heat engine. A numerical example is given to show the effects of heat leakage and internal irreversibility on the optimal performance of the generalized irreversible heat-engine. The results provide theoretical guidance for the design of practical engines. (C) 2005 Elsevier Ltd. All rights reserved.