Now days, air conditioning systems are a must for almost every commercial and residential building to achieve comfortable indoor conditions. The increasing energy demand, and increasing oil prices and pollution levels raise the need for alternative air conditioning systems which can efficiently utilize renewable energy resources. The liquid desiccant-based air conditioning method is pollution free and thermal energy-based cooling techniques can use low grade thermal energy resources like solar energy, waste heat, etc. These systems have an additional advantage of cleaning bacteria and fungi from the air. In this paper, a newly proposed rotary liquid desiccant air conditioning system has been investigated theoretically. Most direct contact liquid desiccant cooling systems have the problem of desiccant carryover which can be eliminated using the proposed system. The effects of various key parameters and climatic conditions on the performance of the system have been evaluated. The results showed that if the key parameters of the system are controlled effectively, the proposed cooling system has the ability to achieve the desired supply air conditions. The system can achieve high coefficient of performance (COP) under different conditions. The dehumidifier has a sensible heat ratio (SHR) in the range of 0.3–0.6 for different design, climatic, and operating conditions. The system can remove latent load efficiently in applications which require good humidity control.