Annular vortex tube is a vortex tube which allows the hot flow pass again over the hot tube. It is introduced for first time in this work. Hot Flow is not allowed to exit after passing conic valve in annular vortex tube, but it is redirected over hot tube. This back flow absorbs heat from outer wall of hot tube. To study temperature separation which occurs in an annular vortex tube; the performance of this type of vortex tube has been experimentally tested and compared with the performance of a typical vortex tube. Inlet test pressure is 4 bars and natural gas is being used as working fluid. For both type of vortex tubes, ratio of length to diameter of tube is 10. Cold orifice diameter of vortex generator is set to 6.4 mm. It was observed that redirecting hot flow over the hot tube in annular vortex tube improves cooling efficiency up to 24% respect to a typical vortex tube at the maximum temperature difference. The results show that cold mass fraction in which the coldest temperature occurs is lower for annular vortex tube comparing with a typical vortex tube.