This paper investigates the recirculating casing treatment (RCT) of a low total pressure ratio micro-compressor to achieve stall margin enhancement while minimizing the design point efficiency penalty. Three RCT injection and extraction configurations are studied, including combined slot-duct, ducts only, and slot only. The numerical approach is validated with a tested micro-compressor using RCT. A very good agreement is achieved between the predicted speedlines and the measured results. To minimize the design point efficiency loss, it is observed that the optimal location of extraction and injection is where the recirculated flow rate can be minimized at the design point. To maximize stall margin, extraction location should favor minimizing the tip blockage such as at the location where the tip flow separation of the baseline blade is fully developed. In addition, the slot configuration that generates pre-swirl to the upstream flow is beneficial to improve stall margin due to reduced incidence. The highest stall margin enhancement achieved is 9.49% with the slot geometry that has the extraction at the 62%C chordwise location, but has a design point efficiency loss of 1.9%. Overall, a small efficiency penalty of 0.6% at the design point is achieved for the final design with the stall margin increased by 6.2%.