A portable generator comprises a shroud for covering at least a crankcase and a cylinder block of an engine thereof. The shroud is formed of split halves. The engine is fixed to the shroud having its upper part connected to a carrying handle of a sound insulating case. As a result, the load of the engine is applied to the carrying handle through the shroud when the portable generator is lifted up with a hand. It is thus not necessary to increase rigidity of the case, thereby enabling lightening of the case. The generator arrangement also provides an improved soundproof effect since the engine, a source of noise, is covered with the shroud and the sound insulating case.