In this study, a vapour compression-absorption two stage refrigeration cycle was designed for the first time, and a thermodynamic analysis of cycle was performed. While NH3-H2O was used as fluid pair in the absorption section, NH3 was used in the vapour compression section. The novel cycle has been compared with alternative cycles for the same operating conditions. It was presented that electrical energy consumption in the novel cycle is 58% lower than classical one stage vapour compression refrigeration cycle, 50% lower than two stage vapour compression refrigeration cycle and 25% lower than vapour compression-absorption cascade refrigeration cycle. The thermodynamics analysis was performed for different evaporator and generator temperatures. The results show that the performance of the vapour compression-absorption two stage refrigeration cycle increases with increasing generator and evaporator temperatures. The highest exergy loss occurs in the absorber, and followed by the generator. With the novel two stage cycle, it is possible to obtain cooling at low temperatures by using alternative energy sources such as solar and geothermal heat, waste and cogeneration heat.