A proton exchange membrane fuel cell (PEMFC) cogeneration system that provides high-quality electricity and hot water has been developed. A specially designed thermal management system together with a microcontroller embedded with appropriate control algorithm is integrated into a PEM fuel cell system. The thermal management system does not only control the fuel cell operation temperature but also recover the heat dissipated by FC stack. The dynamic behaviors of thermal and electrical characteristics are presented to verify the stability of the fuel cell cogeneration system. In addition, the reliability of the fuel cell cogeneration system is proved by one-day demonstration that deals with the daily power demand in a typical family. Finally, the effects of external loads on the efficiencies of the fuel cell cogeneration system are examined. Results reveal that the maximum system efficiency was as high as 81% when combining heat and power.