This paper evaluates the performance and practical challenges associated with fabricating and flight testing an unmanned aircraft powered by a turboelectric system based on a 7 kW turbine engine. Emerging hybrid gas-electric aircraft concepts have been the subject of numerous design studies and analytical evaluations; however, there is a critical need to identify and assess practical issues associated with integrating a hybrid turboelectric power system into an aircraft. The purpose of this study, relevant to emerging hybrid-powered aircraft, is to evaluate and retrofit a prototype turboelectric power system to an existing 391 N gross take-off weight unmanned airframe. The representative 7 kW turboelectric system was installed to identify challenges and to formulate data-driven recommendations for general application to urban air mobility. This work addresses performance, power and thermal management, vibration, and acoustic emissions. Results include a weight breakdown with the turboelectric system making up 21% of the total aircraft weight, in-flight voltage and current measurements with maximum loads observed during a dive pull-out, temperature measurements, accelerometer measurements, and far field sound pressure level measurements. Practical recommendations from this study are applicable to power system reliability, electronic component selection, cooling requirements, and peak power behavior, informing the design of future hybrid gas–electric aircraft.