Absorption systems are an alternative to vapor compression systems due to the high requirements of electrical energy involved in the vapor compression systems. Researchers are concentrating to improve the performance of absorptions systems, and one of the possible ways is to analyze different losses associated in each component of an absorption system using an exergy approach. In this paper, energy and exergy analysis of the single-effect lithium bromide/water absorption chiller system has been carried out. A computer-based simulation model has been developed for parametric investigation of the system which also analyses the effect of generator temperature on the exergy losses in different components of the system. The irreversibility rate in thegeneratorhasbeenfoundtobethe highest when compared with the other components involved in the system. The coefficient of performance (COP) is found to be in the range of 0.85–0.93 for a given set of operations parameters.