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Abstract: A number of approaches were explored for improving characteristics of the encapsulated nuclear heat source (ENHS) reactor and its fuel cycle, including: increasing the ENHS module power, power density and the specific power, making the core design insensitive to the actinides composition variation with number of fuel recycling and reducing the positive void coefficient of reactivity. Design innovations examined for power increase include intermediate heat exchanger (IHX) design optimization, riser diameter optimization, introducing a flow partition inside the riser, increasing the cooling time of the LWR discharged TRU, increasing the minor actinides'' concentration in the loaded fuel and split-enrichment for power flattening. Another design innovation described utilizes a unique synergism between the use of MA and the design of reduced power ENHS cores. Also described is a radically different ENHS reactor concept that has a solid core from which heat pipes transport the fission power to a coolant circulating around the reflector. Promising features of this design concept include enhanced decay heat removal capability; no positive void reactivity coefficient; no direct contact between the fuel clad and the coolant; a core that is more robust for transportation; higher coolant temperature potentially offering higher energy conversion efficiency and hydrogen production capability. [Copyright &y& Elsevier]