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After years of study and improvement, turbochargers in passenger cars now generally have very high efficiency. This is advantageous, but on the other hand, due to their high efficiency, only a small portion of the exhaust energy is needed for compressing the intake air, which means further utilization of waste heat is restricted. From this point of view, a turbo-compounding arrangement has significant advantage over a turbocharger in converting exhaust energy as it is immune to the upper power demand limit of the compressor. However, with the power turbine being located in series with the main turbine, power losses are incurred due to the higher back pressure which increases the pumping losses. This paper evaluates the effectiveness that the turbo-compounding arrangement has on a 2.0 litres gasoline engine and seeks to draw a conclusion on whether the produced power is sufficient to offset the increased pumping work.