Inner grooved tube is enhanced with grooves by increasing the inner surface area. Due to its high efficiency of heat transfer, it is used widely in power generation, air conditioning and many other applications. Heat exchanger is one of the example that uses inner grooved tube to enhance rate heat transfer. Precision in production of inner grooved copper tube is very important because it affects the tube's performance due to various tube parameters. Therefore, it is necessary to carry out analysis in optimizing tube performance prior to production in order to avoid unnecessary loss. The analysis can be carried out either through experimentation or numerical simulation. However, experimental study is too costly and takes longer time in gathering necessary information. Therefore, numerical simulation is conducted instead of experimental research. Firstly, the model of inner grooved tube was generated using SOLIDWORKS. Then it was imported into GAMBIT for healing, followed by meshing, boundary types and zones settings. Next, simulation was done in FLUENT where all the boundary conditions are set. The simulation results were observed and compared with published experimental results. It showed that heat transfer enhancement in range of 649.66% to 917.22% of inner grooved tube compared to plain tube.