The thermodynamic processes in the absorption refrigeration system releases a large amount of heat to the environment. This heat is evolved at temperatures considerably above the ambient temperature, which results in a major irreversible loss in the system components. In this paper an exergy analysis is carried out on a single-effect absorption refrigeration cycle with lithium-bromide–water as the working fluid pair. Numerical results for the cycle are tabulated. A design procedure has been applied to a lithium-bromide absorption cycle and an optimisation procedure that consists of determining the enthalpy, entropy, temperature, mass flow rate, heat rate in each component, and coefficient of performance has been performed.