The thermosyphon SDHWS and the loop type thermosyphon systems are widely used for domestic hot water system. The loop type thermosyphon is a circulation device for transferring the heat produced at the evaporator to the condenser area in the loop. In this study, the operating characteristics of various working fluids being used have been identified. The working fluids employed in the study were ethanol. water, and a binary mixture of ethanol and water. The volume of working fluid used in this study were 30%, 40%, 50%, 60% and 70% of evaporator volume. It is observed that, in the thermosyphon with low volume of working fluid, such as 30% or 40%, the fluid was dried out. The flow pattern and mechanism of the heat transfer were identified through this study. Flow patterns of the binary mixture working fluid were also investigated, and the patterns were recorded in the camera. The system parameters were calculated using the thermal performance data. Modelling of the system was carried out using PSTAR method and TRNSYS program.