The objective of this study is to investigate the performance of a two-stage compression heat pump system for district heating. The experimental setup of heat pump consists of compressor, condenser, evaporator, expansion device, intercooler, flash tank, oil separator and accumulator. The experimental evaluations on the two-stage compression cycle were carried out under various operating conditions which were heat source temperature, the degree of compressor inlet superheat, and intermediate pressure. The temperature ranges of unutilized energy as the heat source were used in the test conditions. As the heat source temperature increased from $10^{circ}C$ to $30^{circ}C$, the COP and heating capacity of the heat pump system increased by 22.6% and 45.8%, respectively. The performance of the two-stage heat pump system increased by 5.2% with the variation of the intermediate pressure in the same heat source temperature conditions.