For efficient use of solar energy in plastic greenhouse, thermal storage system was developed. The system was constructed with the counter-flow type air-water heat exchanger using a thin polyethylene film as a medium of heat exchange parts. Experiments were carried out to investigate the heat exchange rate, optimum water flow rate, overall heat transfer coefficient, and the effectiveness of the counter-flow type air-water heat exchanger with polyethylene film bags. Mathematical model to predict air temperature leaving heat exchanger was developed. The results obtained in the present study are summarized as follows. 1. Heat exchange rate in the counter-flow type air-water heat exchanger with polyethylene film bags was compared to that of polyethylene film. Heat exchange rate was almost identical at air velocity of 0.5m/s on polyethylene film surface. But, heat exchange rate of heat exchanger with polyethylene film bag was $32{sim}55KJ/m^2$ hr higher than that of polyethylene film at air velocity of 1.0m/s. 2. Considering the formation of uniform water film and the sufficient heat exchange rate of polyethylene film bags, optimum water flow rate in polyethylene film bags was $3.0{sim}6.0{ell}/m^2$ min. 3. The overall heat transfer coefficient of polyethylene film bags was found to be $35.0{sim}130.0KJ/m^2;hr;^{circ}C$ corresponding to the air velocity ranging 0.5 to 4.0 m/s on polyethylene film surface. And the overall heat transfer coefficient showed almost linearly increasing tendency to the variation of air velocity. 4. Mathematical model to predict air temperature leaving the heat exchanger was developed, resulting in a good agreement between the experimental and predicted values. But, the experimental results were a little lower than predicted. 5. Effectiveness of heat exchanger for the experiment was found to be 0.40~0.81 corresponding to the number of transfer units due to the variation of air velocity ranging 0.6 to 1.7 m/s.