Demand for energy is growing day by day in the world. Due to limited resources and continuously growing demand there is an urgent need to utilize our finite resources carefully for a sustainable future. Our common goal is to achieve this task in the most efficient, cost effective, and least polluting manner. The energy available in the exhaust of many energy conversion devices goes as waste, if not utilized properly. Since exhaust gases of an internal combustion engine (ICE) carries away -about 30% of the heat of combustion, it represents a great potential to recover the conserve energy. In this project an energy conservation technology "waste heat recovery" is used. In this experimental work a waste heat operated counter flow type heat exchanger is developed to utilize the waste heat from the engine exhaust for heating. After developing the heat exchanger, experimental investigation is carried out for effectiveness of heat exchanger, effect on exhaust emissions and performance of the engine when heat exchanger is integrated with engine.