Abstract: The absorption chiller-heater apparatus of present invention utilizes a portion of direct heat, used to heat water, for providing the refrigeration effect. The external heat input required for providing refrigeration is minimal; hence, the efficiency of the apparatus is increased by 30-40% over the conventional systems. Further, as the quantum of the external heat source required for a new cycle is reduced, the size of the high temperature generator required, is smaller, which results in lower capital costs. The apparatus provides chilled water which can be used for various industrial purposes. The absorption chiller-heater reduces CO2 emissions and utilizes a single arrangement to produce both heating and refrigeration effect. Thus, additional electrical and heat input or separate components are not required.