Most industrial processes generate raw heat. To enhance the efficiency of industrial operations, this raw heat is recovered. Thermoelectric generators (TEG), as solid state devices, provide an excellent application of heat recovery in the form of most manageable electrical power. This work presents a novel MPPT controller based on the Mud Ring Optimization algorithm for a centralized Thermoelectric Generator (TEG) under dynamic thermal gradients. The existing stochastic optimization algorithm for Maximum Power Point Tracking (MPPT) control in renewable energy systems exhibits several limitations that affect its performance in MPPT control. The convergence speed, local minima trap, hyper parameters’ sensitivity toward the population size, acceleration coefficients, and the stopping criterion all impact the convergence stability. In addition to these limitations, sensor noise sensitivity in measurement fluctuates the control system leading to reduced performance. Therefore, the careful design and implementation of the MRO algorithm is crucial to overcome these limitations and achieve a satisfactory performance in MPPT control. The results of this study contribute to developing more efficient MPPT control of TEG systems and implementing renewable energy technologies. The algorithm effectively tracks the maximum power point in dynamic thermal environments and increases the power output compared to conventional MPPT methods. The findings illustrate the efficacy of the proposed controller providing a higher power output (Avg. 99.95%) and faster response time (220 ms) under dynamic thermal conditions achieving 38–70% faster tracking of the GM in dynamic operating conditions.