This paper describes the design and experimental validation of a multi-temperature refrigerated container unit using transcritical R744 as the refrigerant. The unit is required to maintain refrigerated and frozen compartment temperatures of 3.3°C and -20.6°C at an ambient temperature of 57°C. The paper discusses the unique design challenges presented by a small-capacity (around 7 kW) R744 system operating at these extreme temperature conditions. A number of system improvements are implemented in order to meet the capacity requirements at the design condition, namely the addition of an internal heat exchanger (IHX) and an ejector for expansion work recovery to the cycle as well as the use of microchannel heat exchangers for gas coolers. The details of the design of the system and components to address the unique challenges of this application are discussed. Initial experimental results investigating the operating range of the compressor are presented.