In this study, a highly efficient shell-and-tube heat exchanger with plate fins is considered to improve thermal performance of the conventional shell-and-tube heat exchanger. This type of shell-and-tube heat exchanger with plate fins of various shape is simulated three-dimensionally using a commercial thermal-fluid analysis code. CFX4.4. The effect of the shape of the plate fin on heat transfer characteristics is also investigated by the simulation. Plate fins of four different shapes. plane, plane-slit. wave. and wave-slit fins, are considered. The flow fields, pressure drop and heat transfer characteristics in the heat exchanger are calculated. It is proved that the shell-and-tube heat exchanger with plate fins is superior to the conventional shell-and-tube heat exchanger without plate fins in terms of heat transfer. The shape of the plate fin is important in the performance of a heat exchanger such as heat transfer and pressure drop.