In this paper, the applicability of advanced heat transfer enhancement technology to a paddle dryer was discussed. A computational fluid dynamics (CFD) method was used to simulate condensation heat transfer on the inner surface of a dryer paddle. The effect of surface wettability and rotation on condensation heat transfer and droplet behavior was studied. The results showed that the present CFD model could properly simulate the condensation process on a vertical surface. With a decrease in the contact angle, the filmwise condensation turned into a dropwise condensation, which resulted in a significant increase in heat transfer coefficient and provided an approximately 5% increase in evaporation rate for the paddle dryer by changing the wettability of the inner surface of the paddle. Additionally, with a change in rotational angular velocity, heat transfer performance was almost unchanged under the filmwise condensation condition. However, rotational motion might cause a decrease in wall temperature and the equivalent evaporation rate under the dropwise condensation condition. Only a 2.4% increase in the equivalent evaporation rate was found in dropwise condensation with rotation, which indicated that changing the wettability inside the paddle could not be an effective means to enhance the heat transfer and drying efficiency of a rotating paddle dryer.