This thesis discusses the "Design Analysis of the Tesla Turbine" or so called "Flat Disc Turbine" using "Compressed Air" as the working fluid. Nikola Tesla invented the turbine in 1906 and received the patent in 1913. Using the word "Turbine", it might be misleading since turbine generally means a shaft with blades attached to it. Tesla Turbine does not have any blades. It is a series of closely packed parallel discs which are attached to a shaft. This arrangement is packed inside a sealed chamber. Fluid is allowed to enter through an inlet nozzle and it passes onto the discs. This fluid then rotates the discs which in turn rotates the shaft. This rotary motion of the shaft produces torque which can be utilized for various purposes. In order to check the efficiency by varying different design parameters Flow Simulation was carried out. The design of the turbine was done on Solidworks. The design parameters that were varied during the process were the size of the disc, the spacing of the discs and orientation of the inlet nozzles. The computational method of the turbine was done on Star CCM Plus (Star CD) software package. Three designs were made to carry out the flow simulation. The second and the third designs both having two inlets were taken into account. The inlets of the second design were kept horizontal and the third design were kept at an angle of 20°. Both the turbines had 9 disks and all the flow parameters were kept the same. After the flow simulation, it was observed that the Tesla Turbine design with horizontal inlet nozzles yielded maximum efficiency of 15.8%.