The efficiency and capacity of an air source heat pump system decrease as the ambient temperature drops. One strategy of avoiding the decrease of the efficiency and capacity in air source heat pump system is to switch to another thermal energy source. Water can be a good candidate for the heat source. This paper presents the results of the performance analysis of heat pump system with a single unit dual source(SUDS) evaporator The heat exchanger combines two separated evaporators into a single evaporator and the object of the SUDS evaporator is to recover energy from dual heat sources, i.e. air and water. Simulation program is developed for the dual source heat pump system with a SUDS evaporator and experimental data are obtained and compared with the simulation results. Differences in heating capacity and COP are 7% and 8% respectively. Simulation results are in good agreement with the test results. Therefore, the developed program is effectively used for the design and performance prediction of the dual source heat pump system with a SUDS evaporator.