For the past few decades the vapor compression cycle with a solution circuit (VCCSC) has been known to provide high efficiency and variable capacity. In this study performance of a VCCSC cycle is examined through computer simulation. In the simulation heat exchangers were modelled by specifying UA or effectiveness values while the compressor performance was specified by an isentropic efficiency. Aqua/ammonia solution was chosen as the working fluid which can be used in the high temperature range. The results show that there exists an optimum operation condition which is dependent upon the temperatures of the external heat transfer fluids(HTFs). Besides the HTF`s temperature, the maximum system pressure and the size of the solution heat exchanger are shown to have an influence on the optimum operation condition. Finally, as compared to a simple vapor compression heat pump with HFC134a, the COP of the VCCSC is shown to be 2∼22% higher.