Although the simultaneous production of heat and power, the so-called combined heat and power (CHP), is from a thermodynamic point of view still the most efficient energy conversion method, cogeneration units have nowadays problems to position themselves in the current and future energy market. The increasing renewable energy penetration requires CHP units to become more flexible, especially on their currently fixed heat-to-power ratio. Within this framework, micro-gas turbines (mGTs), as small-scale decentralized cogeneration units, offer opportunities. Since they use the recuperated Brayton cycle, they offer the theoretic option to adjust the internal heat streams to provide a flexible heat-to-power ratio as well as the unique feature of a tunable outlet temperature, making the unit feasible/interesting for a larger range of applications having a combined heat and power demand. Hence, in this paper, we assessed the impact of the use of a recuperator bypass for enhanced operational flexibility of mGT. In a first step, the optimal pathway for the recuperator bypass, i.e., cold or hot side bypass, is selected for a typical mGT, the Turbec T100 (currently commercially available as the AE-T100), considering both thermodynamics as well as technological feasibility. Moreover, the potential performance impact on the electrical and total efficiency is calculated as well as on the total available thermal power. In a second step, the specific performance of the option of using a recuperator bypass is assessed for two specific cases: flexible heat-to-power ratio at low temperature and high temperature, i.e., steam generation, cogeneration. Thermodynamic simulations show that the impact on the electric efficiency remains rather limited (maximal 6% absolute efficiency reduction for a 40% bypass ratio), while the available thermal energy and exergy increase significantly: up to 60% increase for thermal power and even 115% increase in the exergy content of the flue gases. Moreover, there is no distinct difference between cold or hot bypass, leaving the selection of the optimal bypass route a pure technical choice. Finally, considering the specific cases studied, simulation results show that heat-to-power ratio could be increased by more than 50% for all power outputs for the low temperature CHP applications, even resulting in a global efficiency increase, while for the high temperature case, recuperator bypass allows for a significant increase in steam production, at total efficiencies comparable to the separate production (i.e., boiler and grid), clearly highlighting the benefits and potential of a recuperator bypass.