The performance of Stirling engines meets the demands of the efficient use of energy and environmental security and therefore they are the subject of much current interest. Hence, the development and investigation of Stirling engine have come to the attention of many scientific institutes and commercial companies. The Stirling engine is both practically and theoretically a significant device, its practical virtue is simple, reliable and safe which was recognized for a full century following its invention by Robert Stirling in 1816. The engine operates on a closed thermodynamic cycle, which is reversible. Today Stirling cycle-based systems are in commercial use as a heat pump, cryogenic refrigeration and air liquefaction. As a prime mover, Stirling cycles remain the subject of research and development efforts. The objective of this paper is to provide fundamental information and present a detailed review of the past efforts taken for the development of the Stirling cycle engine and techniques used for engine analysis. A number of attempts have been made by researches to build and improve the performance of Stirling engines. It is seen that for successful operation of engine system with good efficiency a careful design of heat exchangers, proper selection of drive mechanism and engine configuration is essential. The study indicates that a Stirling cycle engine working with relatively low temperature with air of helium as working fluid is potentially attractive engines of the future, especially solar-powered low-temperature differential Stirling engines with vertical, double acting, and gamma configuration.