The Pellet cooler is used to reduce the temperature of hot pellets from pellet mill to ambient temperature. If hot and moist pellets are not cooled, they may brake in to powder again. The pellet cooler is a normally counter flow type cooler where the airflow is opposite to the direction of flow of pellets. The cooler works on the principal of blowing air through columns of hot & moist pellets, which results in evaporation of moisture from the pellets. For moisture evaporation, heat is taken from the pellets leading to cooling of pellets. To achieve the required cooling effect, pressure and volumetric flow rate of air, length of column and the residence time will play an important role. It consists of intake air lock, cooling chamber, grid gate, blower, pipeline and cyclone assembly.