The design and validation of a Compact Crossover Diffuser (CCD) to replace the size-limited radial diffuser and axial de-swirl cascade of an existing Micro Gas Turbine (MGT) is discussed. A CCD strives to combine the performance of a channel diffuser with the operating range and efficiency of a vaneless diffuser. The development of a one-dimensional Mean-Line Code (MLC) is presented, which aids the designer in preliminary design and performance evaluation of the CCD. Design graphs indicating the performance effects of changing the primary design variables are developed and shown. The MLC is numerically validated using Computational Fluid Dynamics (CFD). Good agreement is seen between the MLC and CFD results, predicting the design point PRss(2-4) to within 1.4 %. A CFD optimized CCD was manufactured and tested. Agreement between the CFD and experimental results for PRts(0-4) is within 7.58 % at 106 kRPM. A numerically predicted increase in PRts(0-4) from 3.31, to 3.53, to 3.83 is seen for the vaneless-, MLC optimized-, and CFD optimized-design respectively. An experimental increase of 82.3 % in engine thrust and 80.0 % in total-to-static pressure recovery across the compressor stage was measured when retrofitting the BMT120KS with a new impeller and CCD.