An air cooler is a conventional air-cooling system in which cooling takes place because of the transfer of heat from the air as latent heat is required for evaporation of water brought in an air stream. This air is generally exhausted out of the comfort area as air temperature increases due to heat load. In case this air is recirculated, it will not cool further due to saturation. If moisture from this air is extracted out, then the air can be recirculated and cooled further with evaporative cooling. Thus a mixture of fresh and recirculated air will result in better cooling conditions. The experimental setup is designed to test this effect. After modification of the air cooler, the humidity of air approaches towards a comfort zone. After modification, it was found that the dehumidification effect increased by 10-12%, which gives a better cooling effect with the same cooling temperature. As silica gel is used to control humidity, so cost is less as well as no smell problem occurs.