In recent years, the demand for cooling has seen a substantial increase, primarily due to rising summertime temperatures. Conventional mechanical compression air conditioners have played a predominant role in fulfilling this demand, albeit at the cost of significant electricity consumption. In response, absorption chillers have emerged as an eco-friendly alternative, powered by sustainable heat sources like solar energy or industrial waste heat. The present work is conducted within the framework of developing compact absorption chillers incorporating plate heat exchangers. It builds upon prior research by improving an existing numerical model for falling film plate heat exchangers within an NH3/H2O absorption chiller. This former numerical model evaluates the coupled heat and mass transfer between the liquid film and the vapor flow while excluding hydrodynamic interactions at the liquid-vapor interface. The current investigation aims to address compactness and cost-efficiency limitations in absorption chillers. The consequences of operation within confined spaces were numerically evaluated. An innovative analytical model was developed to quantify the influence of the interactions at the liquid-vapor interface. Shear stress and interfacial perturbations were considered compared to the classical Nusselt model, enabling the evaluation of the changes in the average film thickness and the flooding phenomenon. This analytical model was then added to the previously developed heat and mass transfer model. The numerical model was applied to both the desorber and absorber units. The results show that increased confinement has minimal effects on the transfer coefficients. Additionally, an approach is suggested for estimating flooding in confined spaces and the results are compared with various correlations available in the literature.