This document describes the design and fabrication of a vapor compression refrigeration system that provides simultaneous heating and cooling using R134a refrigerant. The system utilizes the waste heat rejected in the condenser for purposes like heating water by using a water-cooled condenser. This eliminates the need for separate heating equipment and saves costs. The methodology involves selecting R134a as the environmentally friendly refrigerant, designing the water-cooled condenser and evaporator, integrating other system components, and evaluating the system parameters and performance. The main objective is to efficiently use the waste heat from the condenser for heating applications while providing cooling.