Wastes are defined as a new energy and desired to utilize an energy source beneficially. The authors pay attention to better utilization of wastes, which is a method to convert wastes into energy, and present a waste incineration and power generation system constructed by an incinerator and a Stirling engine generator. The incinerator has a maximum incineration capacity of 49kg/h and is cooled by circulating water in the side walls in order to enable a long life and supply heat by a hot water or air flow. The Stirling engine generator is built up as a 2 piston type engine with driving mechanism including a PM synchronous generator, and is installed in a secondary combustion space of the incinerator and heated by combustion gas and an auxiliary kerosene burner. The system is forecast to have power generation of 5kW and heat supply capacity of 72kW. The waste incineration and power generation system is suitable for service use, because of waste management and energy cost reduction. Also it is effective in environmental preservation and saving energy.