Cassette air conditioners essentially operate in the same way as wall hung split systems. However, unlike wall hung split systems, with Cassette air conditioners the indoor units are installed into ceilings. This makes them an unobtrusive and discrete option, as the indoor unit sits flush with the ceiling. The outdoor unit is typically situated outside (similar to the outdoor unit of a wall hung split system).

Cassette air conditioners can release air in up to 4 directions from the indoor unit, and tend to offer comparable performance to wall hung split systems. They are often useful for larger locations, and are often used in light commercial settings like offices, hotels, and cafes.