Microdischarges are miniature non-equilibrium plasma discharges with characteristic dimensions of ∼10's-100's µm and relatively high operating pressures of ∼10's-100's Torr. Microdischarges possess several unique properties that have been exploited in a number of new applications. We have recently proposed a microdischargebased electro-thermal class of microthrusters for small satellite propulsion. These devices utilize intense gas heating in microdischarges to preheat a propellant gas stream before it is expanded in a micronozzle to produce thrust; thereby improving specific impulse of the device over a conventional cold gas microthruster. This paper addresses direct-current microdischarge phenomena in a flowing gas stream. A two-dimensional, selfconsistent, fluid model of a helium microdischarge in a bulk gas flow is developed. For relatively high current/power levels considered in this study, the microdischarge operates in an abnormal glow mode with positive differential resistivity. Increasing discharge pressures for fixed power and bulk flow rates results in a decrease in charged species densities and the electron and gas temperatures. Also the discharge becomes increasingly constricted with increasing pressures, resulting in a more normal glow mode-like operation. Increasing bulk flow rates results in exactly the same trends as increasing pressures. For given input power and pressure, there exists an optimum flow rate for which the average outlet gas temperature from the discharge is a maximum. An increase in input electrical power results in an almost linear increase in the gas temperatures; this property of microdischarges is the key feature that is exploited in our microdischarge-based thruster concept.