Abstract: The present invention provides a valve seat insert (10) design which has improved heat transfer properties and thus results in improved engine performance. The insert (10) includes a pilot flange (12), a locking flange (15), and an annular groove (20) defined by the two flanges (12, 15). The diameter (D3) of the annular groove (20) is less than the pilot flange diameter (D1). The pilot flange diameter (D1) is less than the diameter (D2) of the locking flange (15). The height (H1) for the annular groove (20) is less than the height (H2) for the locking flange (15). Accordingly, when the invention is installed, engine head material which is displaced by the locking flange (15) fills the annular groove area and places the exterior surface (13) of the pilot flange (12) under a compressive load. This construction eliminates the occurrence of air gaps along the pilot flange exterior surface (--) and thus provides for an optimum transfer of heat in the engine cylinder head.