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A semi-closed cycle, turboshaft gas turbine engine was assembled and tested under a cooperative program funded by the NASA Glenn Research Center with support from the U.S. Army. The engine, called HPRTE (High Pressure, Recuperated Turbine Engine), features two distinct cycles operating in parallel; an “inner,” high pressure, recuperated cycle, in which exhaust gas is recirculated, and an “open” through-flow cycle. Recuperation is performed in the “inner,” high pressure loop, which greatly reduces the size of the heat exchanger. An intercooler is used to cool both the recirculated exhaust gas and the fresh inlet air. Because a large portion of the exhaust gas is recirculated, significantly less inlet air is required to produce a desired horsepower level. This reduces the engine inlet and exhaust flows to less than half that required for conventional, open cycle, recuperated gas turbines of equal power. In addition, the reburning of the exhaust gas reduces exhaust pollutants. A two-shaft engine was assembled from existing components to demonstrate concept feasibility. The engine did not represent an optimized system, since most components were oversized, and the overall pressure ratio was much lower than optimum. New cycle analysis codes were developed that are capable of accounting for recirculating exhaust flow. Code predictions agreed with test results. Analyses for a fully developed engine predict almost constant specific fuel consumption over a broad power range. Test results showed significant emissions reductions. This document is the first in a series of papers that arc planned to be presented on semi-closed cycle characteristics, issues, and applications, addressing the impact of recirculating exhaust flow on combustion and engine components.