Abstract The aim of this paper is to numerically investigate the effects of CO2 dilution on the operation of an industrial micro gas turbine combustor in order to assess the possible application of exhaust gas recirculation (EGR) for post-combustion CO2 capture. A complete 3D model of the combustion chamber has been developed, taking into account the conjugate heat transfer (CHT) and radiation effects, and a detailed chemical mechanism has been employed in the framework of the Flamelet Generated Manifolds approach to model the combustion process. The importance of including the effects of conjugate heat transfer in the model has been demonstrated for both air-fired and EGR conditions. Also, combustion with EGR resulted in lower temperature levels with respect to the air-fired case and thus in reduced NOx production. Further, the increased presence of carbon dioxide has been observed to have an impact on both the flame speed and the flame stabilization mechanism. According to the numerical results, EGR can be a viable way to increase the CO2 content in the flue gas of dry low-emissions (DLE) combustors, and therefore enhance the efficiency of post-combustion carbon separation. At the same time, due to the reduced temperature levels within the combustion chamber, it is possible to attain lower NOx emissions without compromising the combustion efficiency under the considered EGR levels.