In the present study, the theoretical and experimental results of the second law analysis on the heat transfer and flow of a horizontal concentric tube heat exchanger are presented. The experiments setup are designed and constructed for the measured data. Hot water and cold water are used as working fluids. The test runs are done at the hot and cold water mass flow rates ranging between 0.02 and 0.20 kg/s and between 0.02 and 0.20 kg/s, respectively. The inlet hot water and inlet cold water temperatures are between 40 and 50 Β°C, and between 15 and 20 Β°C, respectively. The effects of the inlet conditions of both working fluids flowing through the heat exchanger on the heat transfer characteristics, entropy generation, and exergy loss are discussed. The mathematical model based on the conservation equations of energy is developed and solved by the central finite difference method to obtain temperature distribution, entropy generation, and exergy loss. The predicted results obtained from the model are validated by comparing with the present measured data. There is reasonable agreement from the comparison between predicted results and those from the measured data.