The energy conservation is one of the most important issues in recent years. Especially, the energy conservation through improved control strategies is one of the most highly possible area to be implemented in the near future. The energy conservation of the ice storage system can be accomplished through the improved control strategies. A real time building load prediction algorithm was developed. The expected highest and the lowest outdoor temperature of the next day were used to estimate the next day outdoor temperature profile. The measured dry bulb temperature and the measured building load were used to estimate system parameters by using the on-line weighted recursive least square method. The estimated hourly outdoor temperatures and the estimated hourly system parameters were used to predict the next day hourly building loads. In order to see the effectiveness of the building load prediction algorithm, two different types of building models were selected and analysed. The simulation results show less than 1% in error for the prediction of the next day building loads. Therefore, this algorithm may successfully be used for the development of improved control algorithms of the ice storage system.