This paper consists of a simplified model of counter flow shell and tube type heat exchanger having both interacting liquids as water. In this paper we have first designed a shell and tube heat exchanger to cool water from 55℃ to 45℃ by water at room temperature. The design has been done using Kern’s method in order to obtain various dimensions such as shell, tubes, baffles etc. A computer model using ANSYS 14.0 has been developed by using the derived dimensions of heat exchanger. Then the steady state thermal simulation in ANSYS has been performed by applying several thermal loads on different faces and edges. The heat transfer capabilities of several thermal materials has been compared by assigning different materials to various parts such as tubes, baffles, shell. The materials chosen were of great importance and widely used in practice such as Copper, Aluminium, Steel 1008, Steel 1010.The result obtained shows that by assigning copper to all the parts we have got the best possible value of thermal flux amongst the discussed materials, however other combinations of materials are also expected and under investigation for handy, more economic and useful solution to the problem, which has been discussed in detail inside the paper.