Abstract: The effects of inter-electrode insertion on the performance of a hollow-electrode plasma torch have been investigated by numerical analysis. Simulation results revealed that when inter-electrodes are inserted, the arc voltages and plasma powers increase due to the increase in the arc length. In addition, it was predicted that thermal efficiency can be improved with the increase in plasma power by injecting plasma gases through the gaps between inter-electrodes. These unique effects of inter-electrode insertion are a result of the plasma temperatures adjusting themselves to increase arc voltages when the arc column is contracted radially by increasing gas-flow rate or decreasing inter-electrode diameter.