In order to improve the problem of energy recovery seen in traditional air-conditioners and heat pump heaters, a new type of multi-function air-conditioner and heat pump heater was developed in this study. With the advantages of the traditional air-conditioning system and the heat pump heater system, as well as a cooling source and thermal energy recycle and storage, reduced energy usage was achieved. The system is designed with shared components of the traditional air-conditioner and heat pump heater. Additionally, in accordance with the CNS14464 and CNS15466 test methods, the air-conditioner and directly heated heat pump performance were confirmed in the laboratory (TAF1807). At the fixed capacity setting of 7.0 kW, the coefficient of performance of COPr 3.95, and the coefficient of performance of COP 3.89 were obtained for the air-conditioner and heater respectively. Further, under the setting of the multifunction air-conditioner and heat pump, the overall coefficient of performance of COPo 5.72 was achieved.