How to use an old turbo-compressor (turboshaft) engine and transfer it into a laboratory system used for design and development of progressive control, diagnostic and modeling algorithms transforming it into an intelligent turbo-compressor engine? The intelligent turbo-compressor engine currently designated as iSTC-21v is a small turbojet engine with a single sided radial compressor, bound combustion chamber, single stage un-cooled turbine and variable exhaust nozzle. The engine is equipped with a realtime measurement and intelligent digital control system using two degrees of freedom (fuel supply and exhaust nozzle diameter). The article describes transformation of an old TS-20/21 engine into such engine, which is suitable for laboratory use, research in different areas of cybernetics with perspective applications in different areas of technical practice like unmanned aerial vehicles, ground auxiliary energetic units, generators, etc. The article is aimed to be inspirative also for hobby engine builders, scale modelers and people who work with small turbo-compressor engines.I.