This paper presents the heat recovery performance of water fluidized-bed heat exchanger. Temperature and humidity ratio of waste gas are considered as important parameters in this study. Therefore, the heat recovery rate through water fluidized-bed heat exchanger for exhaust gases with various temperatures and humidity ratios can be estimated from the results of this study. Mass flow ratio (the ratio of mass flow rate of water to that of gas) and temperature of inlet water are also considered as important operating variables. Increase of heat recovery rate can be obtained through either high mass flow ratio or low temperature of inlet water with resultant low recovered temperature. The heat recovery performance with the mass flow ratio of about up to 10 has been investigated. The effect of number of stages of water fluidized-bed on the heat recovery performance has been also examined in this study.