This work presents an experimental investigation of the performance of a HDH system operated by heat pump. The novel heat pump system provides the necessary heating for the humidifier and cooling for the dehumidifier of the HDH system. The proposed integrated unit is capable of producing freshwater as well as cooling effect for space conditioning through water heated or cooled heat exchange units. Influence of various operating parameters such as feed water flowrate, feed water temperature and chilled water flowrate on the general assessment metrics, including gain output ratio (GOR), recovery ratio (RR), coefficient of performance (COP), energy utilization factor (EUF), Specific electrical energy consumption (SEEC) and productivity are evaluated. The cost of freshwater production from the proposed desalination unit is estimated. Results showed that the integrated system is capable of attaining maximum GOR of 4.07, RR of 4.86%, COP of 4.85, EUF of 3.04, and productivity of 287.8 L/day. The minimum SEEC of the system was found to be 160.16 kWhr per cubic meter of freshwater. The system is also capable of providing cooling load of 3.07 kW while producing the needed desalinated water. The estimated price of freshwater production varied from 10.68 US$ to 20.39 US$ per cubic meter.