In this study, a gamma type, Low Temperature Differential Stirling Engine with 770 cc swept volume was designed and manufactured. In the engine, displacer piston and power piston were concentrically situated to each other with 90 phase angle. Atmospheric air was used as the working fluid. The engine was tested with a liquefied petroleum gas (LPG) fuelled heater at laboratory conditions. During the tests, speed-torque and speed-power characteristics were investigated depending on the hot end temperature with aluminum and MDF displacers. Maximum power output was obtained at 320 °C hot end temperature as 2.59 W at 185 rpm engine speed with aluminum displacer. Maximum engine torque was obtained as 0.166 Nm at 160 °C hot end temperature and 125 rpm engine speed and maximum power output was obtained at 160 °C hot end temperature as 3.06 W at 215 rpm engine speed with MDF displacer. http://stirlingengines.blogspot.com