A rotary desiccant-based air-conditioning system is a heat-driven hybrid system which combines different technologies such as desiccant dehumidification, evaporative cooling, refrigeration, and regeneration. This system has an opportunity to utilize low-grade thermal energy obtained from the sun or other sources. In this paper, the basic principles and recent research developments related to rotary desiccant-based cooling systems are recalled and their applications and importance are summarized. It is shown that with novel system configurations and new desiccant materials, there is great potential for improving the performance and consistency of rotary desiccant systems; at the same time, the use of solar energy for regeneration purposes can minimize the operating cost to a great extent. Some examples are presented to demonstrate how rotary desiccant air conditioning can be a promising solution for replacing traditional vapor-compression air-conditioning systems. Recent advances and ongoing research related to solar-powered hybrid rotary desiccant cooling systems are also summarized. The hybrid systems make use of a vapor-compression system in order to have better operational flexibility. These systems, although they consume electrical energy, use solar energy as the principal source of energy, and hence, significant savings of premium energy can be obtained compared to conventional vapor-compression systems. However, further research and development are required in order to realize the sustainable operation of solar rotary desiccant air-conditioning systems, as solar energy is not steady. Reductions in capital cost and size, along with improvements in efficiency and reliability of the system is still needed for it to become a player in the market of air conditioning.