This study presents a numerical modeling and a transient simulation of a desiccant coated heat exchanger (DCHE) that is employed for dehumidification in buildings. DCHE is fabricated by coating type RD silica gel on the fin surfaces of a fin tube heat exchanger. The latent cooling load, which is 25 to 45% of the total cooling load in most weather conditions is removed by adsorption of vapor using DCHE. The saturated adsorbent is then regenerated by using either low-temperature waste heat from industry and/or renewable energy such as solar energy and geothermal energy. A mathematical model is established and a transient simulation has been carried out so as to analyze its performance in terms of average humidity difference (AHD), moisture removal capacity (MRC), latent cooling capacity(QL), and COP. Comparison between the simulation results and the experimental data was carried out and showed good agreement and a similar trend with a maximum discrepancy of 5%. Key results revealed that MRC, AHD, QL, and COP are largely affected by both air dry-bulb temperate and air wet-bulb temperature while they are less affected by the frontal air velocity. Furthermore AHD, MRC and QL are largely improved by hot-water temperature while COP decreases as hot-water temperature increases due to high regeneration energy consumption.