Heat recovery from boiler exhaust gas with multi-stage water-fluidized-bed heat exchanger is analyzed in this study. The recovered energy here is not only sensible heat but also latent heat contained in the exhaust gas. In this system direct contact heat transfer occurs while exhaust gas passes through water bed and the thermal energy recovered this way is again delivered to the water circulating through heat exchanging pipes within the bed. Thus the thermal energy of exhaust gas can be recovered as a clean hot water. A computer program developed in this study can predict the heat transfer performance of the system. The results of experiments performed in this study agree well with the calculated ones. The heat and mass transfer coefficients can be fecund through these experiments. The performance increases as the number of stage increases. However at large number of stages the increasing rate becomes very low.