A prototype micro-thermoelectric power generator (micro-TEG) system based on micro-combustion concept has been developed and presented here. The system consists of Bismuth-Telluride based thermoelectric modules mounted on a 0.5 cm³ volume microcombustor. The hot combustion gases from the microcombustor are allowed to flow in reverse direction through a heating cup to maximize the heat transfer from hot combustion products to thermoelectric modules. The system delivers a maximum power of 2.35 W with a fuel (propane) flow rate of 3.98 g/h. Maximum power is achieved at a voltage of 4.34 V, current 0.54 A with a maximum conversion efficiency of 4.58%. The system generates electric power with an improvement of over 83% in energy conversion efficiency over existing micro-TEG systems.