A two-stage Stirling Cryocooler has been developed and tested for cooling IR sensors in space application. The concept uses an opposed piston linear compressor to drive the two-stage Stirling expander. The configuration used a moving coil linear motor for the compressor as well as for the expander unit. Electrical phase difference of 80 degrees was maintained between the voltage waveforms supplied to the compressor motor and expander motor. The piston and displacer surface were coated with Rulon an anti-friction material to ensure oil less operation of the unit. The present article discusses analysis results, features of the cryocooler and experimental tests conducted on the developed unit. The two-stages of Cryo-cylinder and the expander units were manufactured from a single piece to ensure precise alignment between the two-stages. Flexure bearings were used to suspend the piston and displacer about its mean position. The objective of the work was to develop a two-stage Stirling cryocooler with 2 W at 120 K and 0.5 W at 60 K cooling capacity for the two-stages and input power of less than 120 W. The Cryocooler achieved a minimum temperature of 40.7 K at stage 2.