The purpose of this research is to study the effects of cooling water on a gamma-configuration Stirling engine performance. The single power cylinder engine was tested by an electric heater as a heat source with heat input power of 200W and 300W. Experiments was conducted when cooling water was kept at 15°C, 20°C, 25°C, with a flow rate of 1.235 L/min, 2.311 L/min and 3.214 L/min respectively. Variations of engine speed, cooler inlet and outlet temperature difference, and pressure-volume diagram with cooling water temperature and flow rate at various heat inputs are presented.