An exergy analysis of a single-stage compression–absorption system with R22-E181 as the working fluid pair is carried out. Theoretical results obtained have been compared with those obtained from the experiment. Results show that the heat of mixing of the refrigerant vapour and solution at absorber and desorber contributes a significant amount to the internal entropy generation rates. A significant part of internal entropy generation rate is also due to non-isentropic compression of refrigerant vapour at higher absorber pressure. The exergetic efficiency of the system increases with the increase in absorber pressure due to reduction in internal irreversibilities. Higher value of weak solution concentration along with the increase in solution concentration difference results in higher exergetic efficiency of the system. Thus, a compression–absorption system performs better when operated at higher absorber pressure, and an improved system performance can also be achieved with higher value of weak solution concentration with higher possible solution concentration difference. Copyright © 2008 John Wiley & Sons, Ltd.