The objective of this paper is to presents review on the exergy analysis of vapour compression refrigeration system with using new refrigerants to replace CFCs and HCFCs. It is found that exergy analysis shows better and accurately location of inefficiency as compared to energy analysis. Exergy depends on the evaporator temperature, condenser temperature, degree of sub cooling and compressor pressure. The coefficient of performance (COP) and second law efficiency of the cycle increases, and exergy losses decreases with decreasing the emperature difference between the evaporator and refrigerated space and between condenser and outside air. It is also found that refrigerant should have low ODP and GWP. HC mixtures and R152a are the better substitutes to R12 in domestic refrigeration sector.R290, R1270, R290/R152a, R744 and HC/HFC mixtures are the long term substitutes for R22 in heat pump and in air conditioning system. In chiller application R11, R12 and R22 can be replaced by the R123