Turbo-compounding is an effective way to recover waste heat from engine exhaust and reduce fuel consumption for internal combustion engine (ICE). The characteristics of two-stage turbine, including turbocharger turbine and power turbine, have significant effects on the overall performance of turbo-compound engine. This paper investigates the interaction between two turbines in a turbo-compound engine and its impact on the engine performance. Firstly an analytical model is built to investigate the effects of turbine equivalent flow area on the two-stage turbine characteristics, including swallowing capacity and load split. Next both simulation and experimental method are carried out to study the effects of high pressure variable geometry turbine (HP VGT), low pressure variable geometry turbine (LP VGT) and combined VGT on the engine overall performance. The results show that the engine performance is more sensitive to HP VGT compared with LP VGT at all the operation conditions, which is caused by the larger influences of HP VGT on the total expansion ratio and engine air-fuel ratio. Using the HP VGT method, the fuel reductions of the turbo-compound engine at 1900 rpm and 1000 rpm are 3.08% and 7.83% respectively, in comparison with the baseline engine. The corresponding optimum values of AR are 2.0 and 2.5. (C) 2015 Elsevier Ltd. All rights reserved.