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In this study, the detailed flow and heat transfer characteristics of molten salt for conjugate annular channel heater with rectangular wire coil were numerically investigated. Three-dimensional computational models are established based on the CFD software FLUENT, and are validated against the established empirical correlations. Good agreement is achieved within the considered range of Reynolds (Re = 673–1318). The effect of inner tube is evaluated and discussed based on numerical results. The simulated results show that radial velocity and tangential velocity are generated, and meanwhile two vortices are formed, as compared to the smooth annular channel heater. And The heat transfer is strengthened due to vortices. The distribution of local Nusselt number is not uniform, and hot spot zones are generated in the windward and leeward sides of rectangular wire coil, which are less than that of non-conjugate annular channel heater. This result revealed that the conjugate model must be established when considering the hot spot zone. Nu and f correlations are proposed to predict heat transfer and pressure drop for conjugate annular channel heater. Finally, the overall performance is evaluated based on the principle of entropy production, the value of which is in the range of 0.212–0.245.