Abstract: Magneto hydrodynamics (MHD) power generation process is basically based on the physics background of space plasma. The basic principle is the Faradays Law of electromagnetic induction. In this device plasma (Ionized gas) is the working fluid similar to the mechanism that happening in the magnetosphere of our Earth atmosphere. Except here the process is controlled and we increase the fluid density and pressure to get maximum efficiency in the generating power. Most problems come from the low conductivity feature in the gas at high temperature. Figure of plasma toy globe has same kind of gases which starts conduct when high voltage is applied i.e., the fluid inside the globe becomes plasma; thermal energy of gas is then directly converted in to electrical energy. In this paper the process involved in MHD power generation will be discussed in detail along with the simplified analysis of MDH system, recent developments in magneto hydrodynamics and their related issues.