In this paper, a promising heat engine technology capable of utilizing low grade heat is examined. Based on a two-phase thermofluidic oscillator concept, the novelty and advantage of this particular system lie in its use of phase change and its lack of reliance on inertia to sustain oscillations, though it is recognized that inertia will always be present in any physical manifestation of the engine. The system is analysed using lumped linearized one-dimensional network models, both with and without inertia, based on thermoacoustic principles and extending these to account for phase change. The gain (temperature difference between source and sink heat exchangers) and frequency at which marginal stability (desirable continuous oscillations) can be achieved is calculated. The effects of the load resistance (fluid drag) and fluid inertia, as well as of the flow resistance due the feedback valve on the marginal stability gain, frequency and exergetic efficiency of the system are investigated. It is found that an increase in feedback resistance leads to a need for a higher gain for oscillatory behaviour to be achieved. In addition, even though an increase in either the resistance or inertia in the load, or the feedback resistance at low values of these variables has almost no effect on the required gain and the oscillation frequency of the system, an increase in these variables can lead at higher values to increased gains and reduced frequencies. A reduced feedback resistance and greater load inertia can also lead to considerably higher efficiencies, while increasing the load resistance allows for an increase in efficiency until a maximum is reached, after which the efficiency decreases again. The validity of certain approximations made previously is considered, and it is shown that these must be made with care. The results from this study can be used for the improved design and optimization of such oscillators, and similar systems. (C) 2011 Published by Elsevier Ltd.