The main aim of this study is to use waste heat for cooling effect production from cement rotary kiln shell by applying vapor absorption refrigeration system. The plant has performance to manufacture 2000 tons of clinker per day. Energy and exergy analysis has been performed to assess first and second law efficiencies and rotary kiln is used as a control volume on dry type cement plant. Result shows that about 4.3MW energy is lost from kiln shell. From the analysis, 31.13% total exergy is wasted to the surrounding in case of pre-calcining and pre-heating of raw material. The overall result for exergy analysis of kiln indicates 59.46% of irreversibility and also the first and the second law efficiency of the rotary kiln is 53.39% and 40.54%, respectively. By using convective mode of heat transfer about 11% of energy is extracted by the generator for production of cooling effect which is wasted from kiln shell. About 300kW cooling effect is produced in the evaporator by applying absorption cycle with system performance 0.67 and exergetic efficiency 87%. From heat recovery there is direct savings by reducing fuel consumption and indirect savings by decreasing environmental impact. Hence, use of waste heat results in reduction of thermal pollution and energy consumption in auxiliary equipment.