In this study, the performance of a solar assisted heat pump dryer and water heater has been investigated. A simulation program has been developed. The predicted results are compared with those obtained from experiments under the meteorological conditions of Singapore. A coefficient of performance (COP) value of 7.0 for a compressor speed of 1800 rpm was observed. Maximum collector efficiencies of 0.86 and 0.7 have been found for evaporator-collector and air collector, respectively. A value of the specific moisture extraction rate (SMER) of 0.65 has been obtained for a load of 20 kg and a compressor speed of 1200 rpm. Results suggest that the total drying time of the product decreases with the increase in drying potential. Drying potential is directly proportional to the air flow rate, drying air temperature and inversely proportional to the air relative humidity. Three important parameters that affect the system performance are solar radiation, compressor speed and the total load placed in the drying chamber. Both SMER and COP decrease with increase in compressor speed. (C) 2005 Elsevier Ltd. All rights reserved.