This paper presents a system of regenerative heating incorporating an absorption heat pump in a Rankine steam cycle which can improve cycle efficiency. A simulation has been performed to estimate the Rankine cycle efficiency in the proposed Absorption Heat Pump Regeneration (AHPRG) heating system using the working pair R21-DMETEG. The results show that the cycle efficiency can be improved considerably without reducing the work output by the incorporation of AHPRG for low-temperature heating of steam condensate. Further, the temperature of the heat-pump evaporator which absorbs the heat rejected at the steam condenser plays a predominant role in the cycle efficiency.