A novel rotary desiccant cooling cycle is proposed and studied using thermodynamic analysis method. The proposed cycle integrates the technologies of isothermal dehumidification and regenerative evaporative cooling, which are beneficial for irreversibility reduction. Thermodynamic investigation on the basic rotary desiccant cooling cycle shows that the exergy efficiency of the basic cycle is only 8.6%. The processes of desiccant dehumidification and evaporative cooling, which are essentially the basis for rotary desiccant cooling, affect the exergy performance of the cycle greatly and account for about one third of the total exergy destruction. The proposed cycle has potential to improve rotary desiccant cooling technology. It is advantageous in terms of both heat source utilization rate and space cooling capacity. The exergy efficiency of the new cycle is enhanced significantly to 29.1%, which is about three times that of the ventilation cycle, and 60% higher than that of the two-stage rotary desiccant cooling cycle. Furthermore, the regeneration temperature is reduced from 80 degrees C to about 60 degrees C. The corresponding specific exergy of the supply air is increased by nearly 30% when compared with the conventional cycles. (C) 2012 Elsevier Ltd. All rights reserved.