A moisture indicator particularly adapted for use in a refrigerant system to indicate by visual inspection the moisture content of refrigerant therein. A preferred embodiment of the indicator comprises a hygroscopic plastic sleeve which is mounted behind a sight glass within a housing such as a receiver. The whole sleeve can be impregnated with a cobalt salt whose color changes when exposed to water. In use, the color of the indicator may be visually compared with a reference color stripe which does not change color with the addition of moisture and which is preferably applied adjacent the cobalt salt. The sleeve can also be non-hygroscopic plastic, or even metal, coated with a thin film of hygroscopic plastic containing cobalt salts.