A novel rotary desiccant cooling cycle was proposed based on isothermal dehumidification and regenerative evaporative cooling technologies, which could produce chilled water while dehumidifying the process air. Experimental setup of this novel cycle was built and experimental investigate was made. The test results show that the novel cycle can supply chilled water around temperature of 15.3-18.1°C, which has strong sensible heat handling ability. Favorable chilled water and qualified air can be provided by the cycle in most typical cases, such as temperate, humid and even high humid climates. Moreover, comparing with conventional desiccant cooling cycle, the novel cycle can handle air to a much lower temperature without diminishing in thermal performance, break the obstacle of limited temperate reduction encountered by conventional desiccant cooling cycle and expand the suitable field of dehumidification air conditioning system.