In this research, an experimental study is performed to investigate the effects of system operating variables on the cooling and heating characteristics of heat pump system using geothermal heat source and carbon dioxide as a refrigerant. System variables analyzed include compressor frequency, electronic expansion valve opening, refrigerant charge, secondary fluid temperature and flow rate. Results show that optimum refrigerant charge and electronic expansion valve opening position exist at the maximum point of COP curve, and both cooling and heating capacity increase but COPs decrease with the increase of compressor frequency. The change of a secondary fluid temperature leads to variation of overheat area and enthalpy difference in the evaporator and gas cooler. which again results in considerable variations of cooling and heating capacity and COP. In the case of effects of secondary water fluid flow rate, both cooling capacity and COP increase with the increase of secondary flow in evaporator or gas cooler, whereas heating capacity and COP decrease with the increase of flow rate in gas cooler.