This paper presents a theoretical analysis and an experimental test on a shell-and-tube latent heat storage exchanger. The heat exchanger is used to recover high temperature waste heat from industrial furnaces and off-peak electricity. It can also be integrated into a renewable energy system as an energy storage component. A mathematical model describing the unsteady freezing problem coupled with forced convection is solved numerically to predict the performance of the heat exchanger. It provides a basis for optimum design of the heat exchanger. The experimental study on the heat exchanger is carried out under various operating conditions. Effects of various parameters, such as the inlet temperature, the mass flow rate, the thickness of the phase change material and the length of the pipes, on the heat transfer performance of the unit are discussed by combining with theoretical prediction. Criterion for analyzing and evaluating the performance of heat exchanger is also proposed.