In this article, the thermodynamic analysis of the existing diesel engine cogeneration system is performed. All necessary data are obtained from the actual diesel engine cogeneration plant located at Gaziantep, Turkey. The exergy analysis is aimed to evaluate the exergy destruction in each component as well as the exergetic efficiencies. The thermodynamic performance of a 25.32 MW electricity and 8.1 tons/h steam capacity diesel engine cogeneration system at full load conditions is analyzed. The thermal efficiency of the overall plant is found to be 44.2% and the exergetic efficiency is 40.7%. The exergy balance equations developed in this paper may also be utilized in the exergoeconomic analysis to estimate the production costs depending on various input costs in a diesel cogeneration system. (c) 2008 Elsevier Ltd. All rights reserved.