The turboprop engine has played an important role in short haul commuter and military transport aircraft where high speed is not critical. It may provide the aviation sector with one of the most significant means of achieving reduced operating costs through reductions in fuel consumption. This paper deals with exergo-economic analysis of a modern turboprop engine (CT7-9C) with a free power turbine used for a medium-range twin-engine transport plane that was jointly developed as a regional airliner and military transport. The investigated main components of the engine are the compressor, the combustor, the gas generator, the power turbine and the exhaust. Exergetic parameters, along with exergo-economic parameters, have been calculated for each engine component.