New approaches to space conditioning of buildings are required to resolve economic, environmental, and regulatory issues. One of the alternative systems that is brought to agenda is the desiccant cooling systems, which may provide important advantages in solving air conditioning problems. This study deals with the performance analysis and evaluation of a novel desiccant cooling system using exergy analysis method. The system was designed, constructed and tested in Cukurova University, Adana, Turkey and has been successfully operated since 2008. This system consists of a desiccant wheel, heat exchangers, fans, evaporative cooler, electric heater unit and refrigeration unit. The exergy transports between the components and the destructions in each of the components of the desiccant cooling system are determined for the average measured parameters obtained from the experimental results. Exergy efficiencies of the system components are determined in an attempt to assess their individual performances and the potential for improvements is also presented. The exergetic efficiency values for the whole system on the exergetic product/fuel basis are calculated to range from round 32% to 10% at the varying dead (reference) state temperatures of 0-30 degrees C. (C) 2011 Elsevier B.V. All rights reserved.