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Hands-on, active learning in engineering courses fosters deeper understanding, collaboration, and social skills for students. This paper reports on the design, fabrication, and testing of a transparent miniaturized shell-and-tube heat exchanger module for engineering thermo-fluids classes. This module was also implemented for in-class heat exchanger instruction, where students (sample size, N = 75) conducted hands-on experiments following the instructions provided in the associated worksheet, participated in pre-tests and post-tests, analyzed the experimental data, and provided their feedback through motivational surveys. The performance test data obtained from the developed desktop heat exchanger module shows that the experimental heat transfer rates are in good agreement with theoretically predicted values calculated based on the standard correlations and assumptions. The pre-test and post-test assessments show that the use of this miniaturized shell-and-tube heat exchanger module in classroom instruction improves fundamental understanding of the heat exchange process and enhances student comprehension of complex phenomena of fluid flow patterns and heat transfer in the different parts of the heat exchanger. The motivational assessments demonstrate the module’s efficacy in elucidating the underlying heat transfer mechanisms and facilitating active engagement. The developed low-cost, handson heat exchanger can be used in undergraduate thermo-fluids engineering education for visualizing and better understanding of heat transfer principles, enhancing engagement of students, improving retention of fundamental concepts, and finally bridging the gap between theoretical abstractions and real-world applications.