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This paper presents how electric Two-wheelers are environmental friendly. Paper also shows main drawback of the electric vehicles is the low travelling range; the distance covered between two charging. Regenerative braking gives a green source of energy with help of which one can improve the fuel efficiency of electric Two-Wheeler and the range of vehicle. The design of electric Two-wheelers is more suitable for regenerative braking than that of IC engine powered Two-wheeler. To improve the recovered energy one has to consider the various components of the electric Two-wheelers; such as battery system, control system, transmission system, drive system. With a comparative study of various types of these components the energy recovery in the vehicle can be improved. Paper also explains why BLDC motors and Ni-MH batteries are suitable for electric vehicle. The limitations of ETW, such as low voltage can overcome by using various techniques explained in paper.