There are many regulations set up in different parts of the world with respect to types of vehicles, density of vehicles and environmental conditions. These factors are considered regulating the carbon dioxide (CO2) emissions per mile which is equivalent to the fuel burnt. These regulations are set up by governing bodies which are responsible for fuel efficiency and greenhouse gas effects. The auto makers are forced to design more fuel efficient vehicles. The lower CO2 emissions, reduces dependence on the oil markets which improves economic and political matters. However, these regulations are a subject to new automotive and do not encourage other sectors. They impose direct taxes on oil and carbon consumption for everyone who uses it. Today in this competitive industry to make fuel efficient vehicles and reduce Green House Gas (GHG) emissions in internal combustions has led to various developments in the field of improving efficiency. Exhaust Heat Recovery System (EHRS) plays a vital role in reducing GHG emissions and also improving fuel economy. In this system, the heat rejected by the engine is reused to heat the fluids (like engine coolant and engine oil) that affect the engine performance. Moreover, harmful gases like nitrogen dioxide, carbon monoxide, sulphur dioxide and other hydrocarbons which are emitted can be curtailed resulting in saving the environment. In internal combustion engines, generally only 25% of the fuel energy is converted into useful power output and approximately 40% of it is lost in exhaust heat, other losses are friction and coolant losses. The main goal of this study is to make use of this 40% of lost energy and convert most of it into useful energy. Certain studies also show that by using the EHRS, the power output can be increased to 40% and the heat loss can be reduced to as much as 25%. The thermodynamic properties were analysed and total heat recovery efficiency were be used to measure the performance activity. The design was implemented on a Briggs and Stratton Junior 206 engine. This system includes the use of heat exchangers. Different liquids have different performance curves, therefore affecting the performance of the heat exchangers. Accordingly, the heat exchangers were selected as to the type of fluid that would be used. The main goal of this study is to develop a robust design that can be used in I. C. Engines to make them more efficient.