A simple yet very efficient algorithm has been devised for the analysis of multistream heat exchangers. In this approach, an n-stream heat exchanger is considered as a stack of (n - 1) two-stream exchangers separated by diabetic partitions. Starting from the analysis of the basic two-stream units the entire heat exchanger can be designed non-iteratively. The validity of the algorithm has been established through a number of examples, comprising of two-steam exchanger with external heat leakage, three-stream and four-stream exchangers. Excellent agreements with experimental results and published simulation have been observed. Finally the most crucial assumption made in the present work has been assessed critically and its justification has been provided. (C) 2009 Elsevier Ltd All rights reserved.