This paper presents an experimentally validated computational study of heat transfer within a compact recuperated Brayton cycle microturbine. Compact microturbine designs are necessary for certain applications, such as solar dish concentrated power systems, to ensure a robust rotodynamic behaviour over the wide operating envelope. This study aims at studying the heat transfer within a 6 kWe micro gas turbine to provide a better understanding of the effect of heat transfer on its components` performance. This paper also investigates the effect of thermal losses on the gas turbine performance as a part of a solar dish micro gas turbine system and its implications on increasing the size and the cost of such system. Steady-state conjugate heat transfer analyses were performed at different speeds and expansion ratios to include a wide range of operating conditions. The analyses were extended to examine the effects of insulating the microturbine on its thermodynamic cycle efficiency and rated power output. The results show that insulating the microturbine reduces the thermal losses from the turbine side by approximately 11% without affecting the compressor`s performance. Nonetheless, the heat losses still impose a significant impact on the microturbine performance, where these losses lead to an efficiency drop of 7.1% and a net output power drop of 6.6% at the design point conditions.