This paper considers the influence of internal heat exchangers to the efficiency of a refrigerating system. These internal heat exchangers(liquid-suction or suction-line heat exchangers) can, in some cases, yield improved system performance while in other cases they degrade system performance. A steady state mathematical model is used to analysis the performance characteristics of refrigeration system with internal heat exchanger. The influence of operating conditions, such as gas cooler pressure and evaporation temperatures, superheat in the evaporator and temperature of gas cooler outlet, to optimal dimensions of the heat exchanger is also analyzed in the paper. The main results were summarized as follows : the mass flowrate of R744, inner diameter tube and length of internal heat exchanger, and effectiveness have an effect on the cooling capacity, compressor work and RCI(Relative capacity index) of this system. With a thorough grasp of these effect, it is necessary to design the R744 compression refrigeration cycle using internal heat exchanger.