This paper presents a second law analysis and optimization for the use of Organic Rankine Cycle “ORC” to convert waste energy to power from low grade heat sources. The working fluids used in this study are organic substances which have a low boiling point and a low latent heat for using low grade waste heat sources. The organic working fluids under investigation are R134a and R113 and their results are compared with those of ammonia and water under similar operating conditions. A combined first and second law analysis is performed by varying some system operating parameters at various reference temperatures. Some of the results show that the efficiency of ORC is typically below 20% depending on the temperatures and matched working fluid. In addition, it has been found that organic working fluids are more suited for heat recovery than water for low temperature applications, which justifies the use of organic working fluids at the lower waste source temperatures.