Due to the high performance of electronic components, the heat generation is increasing dramatically. Heat dissipation becomes a significant issue in efficiency promotion and stable operation. Microchannels are of current interest for use in heat exchangers where very high heat transfer performance is desired. Microchannels provide high heat transfer coefficients because of their small hydraulic diameters. In this study, the design and experimental investigation of fluid flow and heat transfer in a microchannel heat exchanger is conducted. Water and air are used as the working fluids and flowed through microchannels. The heat exchanger has been designed with 6 rows of microchannels for water flow and 7 rows of microchannels for forced flow of air. The heights of the microchannels are 4 mm and 10 mm respectively for water and air flows. Microchannels are brazed to form the heat exchanger. For forced convection cooling with air, a military fan is used. A constant heat source has been specifically designed for experiments. Water flow and heat transfer experiments are conducted on the aluminum microchannel heat exchanger. An experimental method of imposing a constant heat flux to water prior to the entrance to the microchannel heat exchanger, to adjust the inlet temperatures is used. v From the data obtained, the rate of heat transfer, effectiveness and various other parameters have been computed and the results have been compared with those from an available commercial heat exchanger. The results indicate that the heat exchanger performs well and provides 681 W of cooling in a volume 677.6 cm3 while the commercial heat exchanger provides 702.5 W of cooling in a volume 2507.5 cm3. In addition, air-side Colburn modulus has been obtained with respect to Reynolds number.