An exhaust system for an engine comprises an exhaust heat recovery apparatus configured to receive exhaust gas from the engine and comprises a first flow passage in fluid communication with the exhaust gas and a second flow passage in fluid communication with the exhaust gas. A heat exchanger/energy recovery unit is disposed in the second flow passage and has a working fluid circulating therethrough for exchange of heat from the exhaust gas to the working fluid. A control valve is disposed downstream of the first and the second flow passages in a low temperature region of the exhaust heat recovery apparatus to direct exhaust gas through the first flow passage or the second flow passage.