A new bypass system using an improved design has been fabricated and tested on a Kawasaki M1A-13X gas turbine engine. The engine and catalytic combustor are currently installed at the City of Santa Clara’s Silicon Valley Power municipal electrical generating stations and connected to the utility grid. The use of a bypass system with a catalytic combustor, incorporating the Xonon Cool Combustion™ technology, on an M1A-13X system increases the low emissions load turndown and ambient operating range without impacting engine efficiency. The increased operating range is achieved because the bypass system provides the required adiabatic combustion temperature (Tad) in the combustor’s post-catalyst burn out zone without changing the turbine inlet temperature. A detailed measurement of the pressure drops, in the old bypass system, revealed that there were large flow losses present, particularly in the re-injection spool piece and the extraction plenum. Since it was determined that the spool had the highest pressure loss, this was the component targeted for improvement. The analysis coupled with detailed measurements on the reinjection piece revealed that the effective area actually varied with flow As the flow changed, so did the flow mechanics inside and exiting the spool piece. Therefore, in order to achieve the design target, the flow area of the spool piece had to be optimized at the predicted capacity flow rate. CFD analysis of the spool piece revealed the regions of losses in the re-injection piece. This analysis along with a one-dimensional flow analysis of the entire system enabled the design of new spool re-injection piece. Once the design was completed, the new bypass system was fabricated and tested. Bypass flow capacity was increased by about 22%. This was achieved by alleviating regions of flow losses and also by using a new “scoop” design for the bypass reinjection tubes. As expected, engine turndown capacity and ambient operating range were improved with the new design.