Abstract: A hot air heating system utilizing the otherwise wasted heat and water vapor in the gases of combustion to pre-heat air supplied to the combustion unit. The hot combustion gases discharged from the combustion unit are mechanically induced by a blower to pass through an auxiliary heat exchanger in countercurrent flow to the air being supplied to the combustion unit, thereby preheating the return air and cooling the combustion gases. The products of combustion include a considerable quantity of water vapor. Cooling the combustion gases results in condensation of the water vapor, which is then collected and can be utilized to humidify the room air. Condensation of the vapors releases their latent heat of vaporization adding considerably to the heat recovery of the system.