The shell-and-tube type heat exchangers have long been widely used in many fields of industry. These types of heat exchangers are generally easy to design, manufacturing, and maintenance, but require relatively large spaces to install. Therefore, the optimization of such heat exchangers from thermal and economical points of view is of particular interest. In this article, an optimization procedure based on the minimum total cost (initial investment plus operational costs) has been applied. Then the flow analysis of the optimized heat exchanger has been carried out to reveal possible flow field and temperature distribution inside the equipment using CFD. The experimental results were compared with CFD analyses results. It has been concluded that the baffles play an important role in the development of the shell side flow field. This prompted us to investigate new baffle geometries without compromising from the overall thermal performance. It has been found that the heat exchanger with the new baffle design gives rise to considerably lower pressure drops in the shell side, which in turn reducing operating cost. The new baffle design is particularly well suited for shell-and-tube heat exchangers, where a viscous fluid-flows through shell side with/out phase change.