In this article, a modified organic rankine cycle, namely flashing organic rankine regeneration cycle (FORRC), is proposed by simultaneously incorporating regeneration and organic rankine‐flashing cycle. The selection of working fluids has a significant influence on the system performance. Six preselected working fluids are employed in the FORRC driven by low or medium temperature hot source. This objective of this work is to screen the most suitable working fluid and optimize the operation parameters, with the maximum coefficient of performance (COP), net power output (Wnet), volume expansion ratio(VER) and power generation per ton hot water(NPW) as the evaluation indicators. The optimization study is carried out by means of a parametric analysis, using a mathematical model developed in the software MATLAB. It is found that compared with the (organic rankine cycle) ORC and (flashing organic rankine cycle) FORC, the maximum COP of the FORRC raises substantially. There exist optimum evaporation temperatures and flashing temperatures at which the COP and NPW obtain the maximum, respectively. By means of comprehensive analysis, pentane appears to be the most suitable working fluids for the FORRC. Besides, some suggestions derived from the results are also given. © 2017 American Institute of Chemical Engineers Environ Prog, 37: 1201–1209, 2018