The term subcooling (also called undercooling) refers to the intentional process of cooling a liquid below its normal boiling point. For example, water boils at 373 K; at room temperature (293 K) liquid water is termed "subcooled". Subcooling is a common stage in refrigeration cycles and steam turbine cycles. Some rocket engines use subcooled propellants.

In refrigeration systems, subcooling the refrigerant is necessary to ensure the completion of the remaining stages of the refrigeration cycle. The subcooling stage provides certainty that the refrigerant is fully liquid before it reaches the next step on the cycle, the thermal expansion valve, where the presence of gas can be disruptive. Subcooling is often accomplished in heat exchangers.

Subcooling and superheating, which are similar and inverse processes, are both important for the stability and well-functioning of a refrigeration system.

Subcooling is normally used so that when the refrigerant reaches the thermostatic expansion valve, all of it is in its liquid form, thus allowing the valve to work properly. If gas reaches the expansion valve a series of unwanted phenomena may occur. These may end up leading to behaviors similar to those observed with the flash-gas phenomena: problems in oil regulation throughout the cycle; excessive and unnecessary misuse of power and waste of electricity; malfunction and deterioration of several components in the installation; irregular performance of the overall system and, if unmonitored, ruined equipment.

Another important and common application of subcooling is its indirect use on the superheating process. Superheating is analogous to subcooling in an operative way, i.e., occurring prior to a stage where refrigerant in a liquid-gas state would disrupt the cycle (uncompressible liquid-gas mixtures will destroy the compressor) and both processes can be coupled using an internal heat exchanger. Subcooling then is accomplished simultaneously with superheating, allowing heat to flow from subcooling refrigerant at higher pressure (liquid) to superheating refrigerant at lower pressure (gas). This creates an energetic equivalence between the subcooling and the superheating phenomena where there is little or no energy loss. Normally, the fluid that is being subcooled is hotter than the refrigerant that is being superheated, allowing an energy flux in the needed direction. Thus, subcooling is an easy and widespread source of heat for the superheating process.

Allowing the subcooling process to occur outside the condenser (as with an internal heat exchanger) is a method of using all of the condensing device's heat exchanging capacity. A huge portion of refrigeration systems use part of the condenser for subcooling which, though very effective and simple, may be considered a diminishing factor in the nominal condensing capacity. A similar situation may be found with superheating taking place in the evaporator, thus an internal heat exchanger is a good and relatively cheap solution for the maximization of heat exchanging capacity.

Another widespread application of subcooling is boosting and economising. Inversely to superheating, subcooling, or the amount of heat withdrawn from the liquid refrigerant on the subcooling process, manifests itself as an increase on the refrigeration capacity of the system. This means that any extra heat removal after the condensation (subcooling) allows a higher ratio of heat absorption on further stages of the cycle. Superheating has exactly the inverse effect. An internal heat exchanger alone is not able to increase the capacity of the system because the boosting effect of subcooling is dimmed by the superheating, making the net capacity gain equal to zero. Some systems are able to move refrigerant and/or to remove heat using less energy because they do so on high pressure fluids that later cool or subcool lower pressure (which are more difficult to cool) fluids.

In spaceflight applications, subcooling refers to cryogenic fuels or oxidizers which are cooled well below their boiling point (but not below the melting point). This results in higher propellant density and, hence, higher propellant tank capacity and reduced vaporization losses.^{[citation needed]}