Distributed Generation (DG) is predicted to play a important role in electric power system in the near future. insertion of DG system into existing distribution network has great impact on real-time system operation and planning. It is widely accepted that micro turbine generation (MTG) systems are currently attracting lot of attention to meet customers need in the distributed power generation market. In order to investigate the performance of MT generation systems, their efficient modeling is required. This paper presents the modeling and simulation of a MT generation system suitable for stand-alone operation. The system comprises of a permanent magnet synchronous generator driven by a MT. A brief description of the overall system is given, and mathematical models for the MT and permanent magnet synchronous generator are presented. Also, the use of power electronics in conditioning the power output of the generating system is demonstrated. Simulation studies with MATLAB/Simulink have been carried out in stand-alone operation mode of a DG system.