The paper presents experimental data and results from a prediction tool for the performance of a desiccant loop cooling system. The experiments are performed under a variety of high humidity and hot ambient conditions and the system performance is described. One of the experimental conditions is typical of many Indian cities and the systems appropriate for those cities are established. A simulation program that can predict the performance of the desiccant loop is developed. The simulation results show that this system can work as effectively as vapor compression air-conditioning for certain ambient conditions whereas it can function as a pre-cooler to a vapor compression system under more severe conditions, resulting in a reduced power consumption. The results presented in the paper give a guideline to practicing engineers as to when a desiccant loop cooling system would be useful. A simple payback analysis and a lifecycle cost analysis shows that a desiccant cooling system with a waste heat recovery recuperator is an economically viable investment.