An anti-ice valve, a turbine engine including an anti-ice valve assembly and a method of operating an anti-ice valve where an anti-ice valve has a housing and a valve element configured to control a flow of hot bleed air through the housing, and a muscle air passage extending through the housing, a cooling air passage extending through the housing, and a heat exchanger located within the housing and having heat transfer surfaces in thermal communication with the muscle air passage and the cooling air passage.