We present an X-ray imaging and spectroscopic study of the molecular cloud interacting mixedmorphology (MM) supernova remnant (SNR) G346.6-0.2 using XMM-Newton. The X-ray spectrum of the remnant is well described by a recombining plasma that most likely arises from adiabatic cooling, and has sub-solar abundances of Mg, Si, and S. Our fits also suggest the presence of either an additional power-law component with a photon index of ∼2, or an additional thermal component with a temperature of ∼2.0 keV. We investigate the possible origin of this component and suggest that it could arise from either the Galactic ridge X-ray emission, an unidentified pulsar wind nebula or Xray synchrotron emission from high-energy particles accelerated at the shock. However, deeper, high resolution observations of this object are needed to shed light on the presence and origin of this feature. Based on its morphology, its Galactic latitude, the density of the surrounding environment and its association with a dense molecular cloud, G346.6-0.2 most likely arises from a massive progenitor that underwent core-collapse.