Single-stage evaporation heat pumps are widely used in drying fields, but they suffer from relatively low efficiency. To enhance the performance of conventional heat pump drying systems with single-stage evaporating, a two-stage evaporation heat pump drying (TSE-HPD) system is proposed in this paper for graded cooling/dehumidification. In this innovative system, the quasi dual-stage compression, matching a double temperature level evaporation process, achieves graded cooling and dehumidification of air. Its performance is investigated using energy and exergy analysis methods and compared with that of a single-stage compression heat pump drying (SSC-PHD) system. The results indicate that the TSE-HPD system exhibits 15.5 %–19.3 % improvement in the coefficient of performance (COP) and 16.3 %–18.9 % enhancement in the specific moisture extraction rate (SMER) compared to those of the SSC-PHD system when the condensing temperature varies between 50 °C and 70 °C. The parametric analysis reveals that the highest COP, SMER, and exergy efficiency (ηex) occur when the optimum first-stage evaporating temperatures are 16 °C, 25 °C, and 34 °C, respectively, under three standard operating conditions. At this time, the first-stage evaporator handles 36 %–40 % of the cooling/dehumidification tasks, the refrigerant mass flow ratio at the intermediate-pressure suction port of the compressor ranges from 47 %–58 %, and the optimum first-stage and second-stage compression ratios are 1.49–1.52 and 2.45–2.61, respectively. The research results provide guidance and reference for the determination of matching design parameters and efficient operation control parameters of drying systems.