In this paper, a detailed description of a project designed to recovery and utilize waste heat in a cotton manufacturing enterprise in Shandong, Jin Mao Textile Co., Ltd(China) is presented: both energy saving and emission reduction(ESER) aspects have been thoroughly considered. First of all, an accurate analysis of the status of the previous cotton mill for production process was developed, to identify possible improvement opportunities; then an energy saving reformation of waste heat recovery in cotton mill was proposed and designed. After that, by means of a comprehensive feasibility analysis, the ESER indices were calculated assuring good environmental benefits of the plant modification investment. The modifications to the system make it possible to achieve consistent annual savings of coal, electricity and waste heat, CO2, SO2 emissions through effective recovery and utilization of the waste heat that was discharged into the atmosphere in the original production. Implementation of the reformation system fulfilled the waste heat recovery and utilization. And also create good environmental benefits.