An air conditioning system with precisely controlled dehumidification functions is disclosed. The air conditioning system comprises an indoor air handling system comprising a primary heat exchanger and a secondary heat exchanger. The indoor air handling system can be coupled to an outdoor unit comprising a compressor and an outdoor heat exchanger. When a controller system receives a measured humidity that exceeds a set humidity, the controller system can increase the cooling capacity of the air conditioning system to meet a set temperature. Once the set temperature is met, the controller system can switch to a dehumidification mode wherein the primary heat exchanger is cooled and the secondary heat exchanger is activated. When the measured temperature exceeds the set temperature, the controller system can switch from the dehumidification mode back to cooling mode.