An external Wastegate is typically used with turbochargers that do not have internal wastegates. An external wastegate requires a specially constructed turbo manifold with a dedicated runner going to the wastegate. The external wastegate may be part of the exhaust housing itself. External wastegates are commonly used for regulating boost levels more precisely than internal wastegates in high horse power applications, where high boost levels can be achieved. External wastegates can be much larger since there is no constraint of integrating the valve or spring into the turbocharger and turbine housing.

It is possible to use an external wastegate with an internally gated turbocharger, though this generally involves welding the internal wastegate shut to avoid unwanted leaks.