Abstract. This investigation was performed to experimentally investigate the enhancement of heat transfer and the friction of an annulus in a double pipe heat exchanger system with rectangular grooves in the turbulent flow regime. The shell is made of acrylic and its diameter is 28 mm. The tube is made of aluminium and its diameter is 20 mm. Grooves were incised in the annulus room with a circumferential pattern, with a groove space of 2 mm, a distance between the grooves of 8 mm and a groove height of 0.3 mm. The experiments consist of temperature and pressure measurement and a flow visualization. Throughout the investigation, the cold fluid flowed in the annulus room. The Reynold number of cold fluid varied from about 31981 to 43601 in a counter flow condition. The volume flow rate of hot fluid remains constant with Reynold number about 30904. Result showed the effect of grooves, which are applied in the annulus room. The grooves induce the pressure drop, the pressure drop in the grooved annulus was greater by about 15.88 % to 16.72 % than the one in the smooth annulus. The total heat transfer enhancement is of 1.09-1.11. Moreover, the use of grooves in the annulus of the heat exchanger not only increase the heat transfer process, but also increase the pressure drop, which is related to the friction factor.