In this study, a gamma-type low temperature differential Stirling engine was designed and manufactured. The displacer and piston of the engine were concentrically situated to each other. The engine was tested by using a liquefied petroleum gas burner at laboratory conditions. The working fluid was ambient air at atmospheric pressure. Test procedure intended to investigate the speed-torque and speed-power characteristics of the engine depending on the hot-end temperature. Two different displacers made of aluminum alloy and medium density fiberboard were used. The maximum torque and power obtained were 0.166?Nm at 125?rpm speed and 3.06?W at 215?rpm speed, respectively, at 160 degrees C hot-end temperature with medium density fiberboard displacer. Copyright (C) 2011 John Wiley & Sons, Ltd.