Package air conditioner is a bigger version of the window air conditioner. However, unlike window AC, Split AC it has a higher cooling or heating capacity and is usually able to cool an entire house or a commercial building. The nominal capacities ranges from 3 tonne to 15 tonne.

Packaged air conditioners with air cooled condensers. In this packaged AC, the condenser of the refrigeration system is cooled by the atmospheric air. There is an outdoor unit that comprises of the important components like the compressor, condenser and in some cases the expansion valve.