Gas Turbine power plants are being used for producing electricity, operating airplanes and for various industrial applications such as refineries and petrochemical plants. In this paper, thermodynamic performance analysis of an open cycle gas turbine power plant has been performed. The mathematical formulation for the specific work and efficiency were derived and analyzed. The effect of operating parameters like the ambient temperature, relative humidity, compressor pressure ratio, turbine inlet temperature (TIT), isentropic efficiencies of compressor and turbine on the thermal efficiency, power output and heat rate of a gas turbine plant are studied. An in-house code in Matlab has been developed. The data generated using the code have been utilized to draw different relevant graphs. The results show that the compression ratio, ambient temperature, air to fuel ratio as well as the isentropic efficiencies can strongly influence the thermal efficiency. In addition, the thermal efficiency and power output decreases linearly with increase of the ambient temperature and air to fuel ratio. Also, the specific fuel consumption and heat rate increases linearly with increase of both ambient temperature and air to fuel ratio. Various techniques to improve the performance of gas turbine are also discussed.