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Three dimensional conservation equations of mass, momentum and energy are solved numerically to determine the heat transfer and fluid flow characteristics of a rectangular winglet type fin-and-tube heat exchanger. The flow is assumed to be laminar and the surface of the tube is maintained at a constant temperature. The winglets are placed in “common flow up” configuration. This configuration results considerable separation delay and improves heat transfer in the near wake of the tubes. A moderate attack angle (10°) of the winglet has been used so far in this study and it is expected that higher angle of attack will result in higher heat transfer performance. In comparison to the baseline case (without winglets) it is found that the heat transfer performance increases significantly by using winglets with rise in pressure drop. It is also found that by increasing the number of winglets and changing the position of winglets has a significant effect on heat transfer performance.