This paper presents predicted effects of recuperator performance variation on the performance and the compressor stability of a micro-gas turbine which is used for power generation. The analysis shows that the gas turbine delivered power, the efficiency and the compressor surge margin decrease while the recuperator total pressure recovery coefficient increases for either cold side or hot side. The total pressure recovery coefficient of the cold side has noteworthy influence on the turbine through flow capability and seriously affects the compressor surge margin. The heat transfer coefficients decrease result in the gas turbine efficiency decrease but the other performance variables remain constants. The heat transfer coefficients for both side have equal effects on the gas turbine efficiency.