As the heat dissipation of smart devices increases, cutting-edge cooling solutions are becoming increasingly important. The heat pipe is an efficient device that boosts heat transfer and is recommended to reduce thermal management power. In this study, a concentric annular heat pipe (CAHP) with distilled water as a working fluid is proposed to enhance heat transfer, and experiments and one-dimensional analysis were carried out to predict thermal characteristics and evaluate performance. The CAHP was 90 mm in length, 62 mm in inner diameter, 70 mm in outer diameter, and 0.4 mm in thickness. At the outer surface of the internal CAHP, a two-layer screen mesh wick (500 mesh, Stainless Steel 304) that is 0.34 mm in layer thickness was installed. A ceramic heater (20 mm × 20 mm) was attached to the middle of the outer surface, and the hollow region with 48 fins was cooled by an electric fan. The experiment was carried out with variations in the heat load, the filling ratio of the working fluid, the pitch angle, the roll angle, and the airflow speed, and the one-dimensional analysis was modeled by AMESIM. The experimental results showed that the best thermal resistance of the CAHP was 3.74 °C/W with a supplied heat of 20 W, a pitch angle of −15°, and a Vair of 3 m/s. In addition, the CAHP’s 1-D simulation model using AMESIM was verified through the experimental results. However, although the modeling results according to the inclination angle could not be reflected due to the difficulty of implementing multiple orientation structures in the one-dimensional simulation model, the simulation results were found to be almost consistent with the experimental results. Case studies were conducted to understand the various characteristics of the CAHP using the model, and the optimal volume fraction, the porosity, and the number of layers of the wicks were determined to be 10, 0.345, and 2, respectively.