A prototype of an advanced single-stage water/LiBr absorption chiller with a design cooling capacity of 40 kW was developed. The prototype is designed to operate in a simultaneous cooling and heating mode by recovering condensation heat. This paper presents and discusses the newly developed advanced chiller prototype and the modified multifunctional test rig for prototype characterization in different operation modes. The test rig has four external heat carrier loops to characterize and validate the prototype during the simultaneous cooling and heating operation. External and internal temperature sensors and volumetric flow rate measuring devices are installed in the prototype. The design conditions of the advanced absorption chiller are chilled water inlet/outlet temperatures of 12/7 °C, driving hot water and cooling water (absorber external loop) inlet temperatures of 100 °C and 30 °C, respectively, and produced hot water inlet/outlet temperatures of 40/55 °C. The prototype also operates as a conventional absorption chiller to provide only cooling by rejecting the absorber and condenser heat to cooling water (heat rejection medium). Finally, developing such absorption chillers improves overall performance and provides dual useful outputs (cooling and heating).