SYNOPSIS In this paper, the power density, defined as the ratio of power output to maximum specific volume in the cycle, is taken as the objective for performance analysis of an internally and externally irreversible radiative Carnot heat engine model in the viewpoint of finite time thermodynamics or entropy generation minimisation. The obtained results are compared with known results on maximum power analysis. The design parameters at maximum power density lead to smaller and more efficient heat engines. It was found that the ratio of the cold to hot reservoir temperatures must be less than or equal to 0.2 and the ratio of area of heat exchangers must be less than 1.0 for optimum cycle efficiency at maximum power density conditions of an internally & externally irreversible radiative heat engine.