Seawater desalination stands as an increasingly indispensable solution to address global water scarcity issues. This study conducts a thorough exergoenvironmental analysis of a multi-effect distillation with thermal vapor compression (MED-TVC) system, a highly promising desalination technology. The MED-TVC system presents an energy-efficient approach to desalination by harnessing waste heat sources and incorporating thermal vapor compression. The primary objective of this research is to assess the system’s thermodynamic efficiency and environmental impact, considering both energy and exergy aspects. The investigation delves into the intricacies of energy and exergy losses within the MED-TVC process, providing a holistic understanding of its performance. By scrutinizing the distribution and sources of exergy destruction, the study identifies specific areas for enhancement in the system’s design and operation, thereby elevating its overall sustainability. Moreover, the exergoenvironmental analysis quantifies the environmental impact, offering vital insights into the sustainability of seawater desalination technologies. The results underscore the significance of every component in the MED-TVC system for its exergoenvironmental performance. Notably, the thermal vapor compressor emerges as pivotal due to its direct impact on energy efficiency, exergy losses, and the environmental footprint of the process. Consequently, optimizing this particular component becomes imperative for achieving a more sustainable and efficient desalination system.