Traditional vapor compression refrigeration system with a water-cooled condenser involves the use of a cooling tower, which leads to significant water losses and higher power consumption. In the proposed work, an attempt has been made to eliminate this water loss by doing away with cooling towers, their related water treatment, and pumping systems while improving the cooling efficiency. The current work involves analysis, testing and performance validation for a 1-ton vapor compression refrigeration system using a fog-based condenser. Here, tiny fog droplets are spread onto the hot surface of the condenser which evaporate quickly. The formed water vapor is recovered further in a water recovery heat exchanger resulting in zero water loss. This trend of water conservation is expected to continue for large-scale cooling because water is recovered in a closed system. The thermal properties were measured under given operating conditions. An analysis of performance parameters was done experimentally, on the air side; and theoretically, on the refrigerant side. The results obtained were as follows: 4.7 Coefficient of performance, 16 Energy Efficiency Ratio, and 844 W/ton consumption. Further, the heat transfer area obtained for the fog-based system is 3.5 times more than that of a water-cooled condenser for the same heat exchanger. For a 1-ton capacity of refrigeration, around 50% increase of COP was observed with the fog-based condenser compared to an air-cooled condenser (which is expected to be higher for larger capacities). Also, the effects of supersaturation and inlet fog temperature on the system performance were studied.