Abstract: A three dimensional thermal-hydraulic model is developed for the analysis of fluid flow and heat transfer in shell-and-tube heat exchanger. The numerical model uses the distributed resistance model and distributed heat source model along with the concept of porosity, surface permeability to account for the presence of tubes, flow baffles etc in shell side. The volume average conservation equations of mass, momentum and energy of shell side fluid are solved in primitive variable form by using a semi-implicit consistent control-volume formulation in which a segregated pressure correction linked algorithm is employed. The analytical model is validated by comparison of computed pressure drop and temperature distribution with experimental data.