This work focuses on an innovative Rotary Displacer SE (RDSE) configuration for Stirling engines (SEs). RDSE features rotary displacers instead of reciprocating displacers (found in conventional SE configurations), as well as combined compression and expansion spaces. Guided by the research question "can RDSE as a novel configuration achieve a higher efficiency compared to conventional SE configurations at comparable operating conditions?", the goal of this study is to characterize, analyze, and optimize RDSE which is pursued in three technical stages. It is observed the RDSE prototype has an optimum phase angle of > 90° and thermal efficiency of 15.5% corresponding to 75.2% of the ideal (Carnot) efficiency at the source and sink temperatures of 98.6° C and 22.1° C, respectively. Initial results indicate that 125° phase angle provides more power than that of the theoretically optimum 90° phase angle. The results also show comparable B_n and significantly higher W_n values (0.047 and 0.465, respectively) compared to earlier studies, and suggest the RDSE could potentially be a competitive alternative to other SE configurations. Furthermore, due to lack of a regenerator, the non-ideal effects calculated in the analytical approach have insignificant impact (less than 0.03 kPa in 100 kPa). The clearance volume in …