This paper presents the exergy analysis and optimization of the Stirling engine, which has enormous potential for use in the renewable energy industry as it is quiet, efficient, and can operate with a variety of different heat sources and, therefore, has multi-fuel capabilities. This work aims to present a method that can be used by a Stirling engine designer to quickly and efficiently find near-optimal or optimal Stirling engine geometry and operating conditions. The model applies the exergy analysis methodology to the ideal-adiabatic Stirling engine model. In the past, this analysis technique has only been applied to highly idealized Stirling cycle models and this study shows its use in the realm of Stirling cycle optimization when applied to a more complex model. The implicit filtering optimization algorithm is used to optimize the engine as it quickly and efficiently computes the optimal geometry and operating frequency that gives maximum net-work output at a fixed energy input. A numerical example of a 1,000 cm 3 engine is presented, where the geometry and operating frequency of the engine are optimized for four different regenerator mesh types, varying heater inlet temperature and a fixed energy input of 15 kW. The WN200 mesh is seen to perform best of the four mesh types analyzed, giving the greatest network output and efficiency. The optimal values of several different engine parameters are presented in the work. It is shown that the net-work output and efficiency increase with increasing heater inlet temperature. The optimal dead-volume ratio, swept volume ratio, operating frequency, and phase angle are all shown to decrease with increasing heater inlet temperature. In terms of the heat exchanger geometry, the heater and cooler tubes are seen to decrease in size and the cooler and heater effectiveness is seen to decrease with increasing heater temperature, whereas the regenerator is seen to increase in size and effectiveness. In terms of the regenerator mesh type, it was found that the WN200 mesh gave a shorter regenerator with greater cross-sectional flow area which gave a smaller pressure drop.