This research introduces a novel lyophilized hydrogel for double-skin envelope (DSE) integration as a dynamic louver system to provide dehumidification of moisture, daylighting modulation, and recuperation of water condensate. The work links empirical experiments for thermal, optical, and sorption properties of the hygrothermal materials alongside system scale analytical models to inform energy and water conservation measures. The system scale analyses are conducted with LBNL WINDOW7 in combination with numerical analytical models, in addition to select computational fluid dynamic (CFD) studies for development of louver geometries to optimize sorption effectiveness in the DSE cavity airstream. Effective heat transfer and visible transmittance values for the dynamic states of the DSE hygrothermal louver system are then linked to building scale analyses in the Rhino- Grasshopper platform using the Honeybee plug-in to run EnergyPlus. The dynamic state envelope system is assessed through annual integration modeling for hothumid climate conditions. The work introduces new aspects in simulation modeling with integration of the standard mechanical air-handling system functions to be coupled with multi-state dynamic properties for the envelope system in building scale analyses. A sorption coefficient is identified for analytical modeling of the DSE hygrothermal louver cavity thermodynamics. The work also integrates a new calculation tool in the simulation platform for evaluating potential water recuperation from humidity sorption and condensate release functions.