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Thank you for your inquiry! Yes, it is normal for water to come out of the drain outlet when the AC unit is running in cool mode. The unit is designed to remove excess moisture from the air as it cools, which is why water is produced. It is perfectly fine to use the unit with the clear hose hooked up to the dehumid drain outlet. Just make sure the hose is properly secured and draining in a suitable location. Keith | Insignia Support https://www.bestbuy.com/site/insignia-300-sq-ft-portable-air-conditioner-white/6393204.p?skuId=6393204
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