This final year project presents the design, fabrication and testing of Tesla Bladeless Turbine for a 500 W hydropower system. One of the important components of Tesla turbine is the disc; its dimensions are determined from previously conducted research from Warren Rice, who mathematically modeled the flow between two co-rotating discs. Other scientists validated his results and published turbine performance plot, which can be used for further research. Using these results of the discs, the dimensions of the shaft were determined by considering a shaft under cyclic loading. Bearings were selected using analytical techniques and then the dimensions of the stator that is the outer cylinder were determined considering it as a thin walled cylinder. The nozzle slot in the outer cylinder was considered as an initial crack and stress analysis were performed to ensure safe operation. The design parameters and the processes adopted to calculate these parameters are shown in the report. Using these dimensions, a three dimensional CAD model of the turbine is generated using Solid works 2016, and modified to eliminate any problems in the shape and dimensions of individual parts. The parts were then manufactured and assembled in the innovation lab at FME GIKI. Once the assembly is completed, the turbine was tested under different working conditions, at the fluid mechanics lab of FME GIKI. In the end, the performance of the turbine was compared with that of conventional hydro-powered turbines, to see how much it can compete with the already accomplished turbines, used in the industry.