Power augmentation in a small-scale horizontal axis wind turbine, with its rotor encased in a flanged diffuser is explored. The power output of the wind turbine varies with changes in the diffuser design and the resulting back pressure. Reduction in this back pressure also results in early flow separation at the diffuser surface, which hinders turbine performance. The main aim of this study is to numerically investigate the local configuration of the wind turbine location inside the diffuser by varying diffuser angles and wind speeds. Therefore, shroud and flange were modeled and analyzed using the computational fluid dynamic (CFD) analyses and experiments were performed at two wind speeds 6m/sand 8m/swith and without the diffuser for model validation. The divergence angle of 4° was found to have no flow separation, thus maximizing flow rate. The proposed design shows wind speed improvement of up to 1.68 times compared to the baseline configuration. The corresponding optimum flange height was found to be 250mm. However, increasing the divergence angle had a similar output. The dimensionless location of wind turbine was found to be between 0.45 and 0.5 for 2° and 4° divergence angle respectively. Furthermore, the maximum augmentation location varies with wind speed and diffuser’s divergence angle as described by dimensionless location of wind turbine, thus presenting a noteworthy contribution to the horizontal axis wind turbine area with the flanged diffuser.