A new type of solid desiccant dehumidification cycle with internal heat recovery based sorptive material coated heat exchanger (SCHE) is proposed. This system can realize waste heat recovery from exhausted air in regeneration process, in which a heat recovery device (HRD) is adopted. The performance evaluation of the novel cycle is compared with that of the conventional cycle without HRD in terms of moisture and energy transfer. Based on the experimental results, the thermal coefficient of performance of the system has been improved to 1.2, almost twice the thermal coefficient of performance of the conventional cycle without HRD. The electrical coefficient of performance can reach about 13.83. When HRD is involved in the system, the supply air temperature is close to the inlet temperature of process air (ambient air), dehumidification capability meets the design requirements (lower than 8gkg−1) and the regeneration temperature can satisfy the regeneration requirement of low grade heat source. The thermal efficiency of the HRD is calculated as 0.88 on average. As a conclusion, SCHE with HRD system could be a potential alternative with effective operation which can be promoted in higher humidity and temperature areas.