In order to develop a new coolant for nuclear and non-nuclear applications, nanoparticles of Al2O3 for nanofluids have been successfully synthesized by solgel method utilizing AlCl3 as precursor and urea as chelating agent. The mole ratio of the AlCl3 and urea was 1:2. The solution was stirred to form a sol and then was heated at 150 o C until forming a gel. The gel was then calcined at 500 o C for 1 hour to get Al2O3 nanoparticles. Nanofluids of Al2O3 were prepared by dispersing the Al2O3 nanoparticles into water as base fluid. The synthesized Al2O3 nanoparticles crystallized in gamma phase with crystallite size of 3.4 nm as confirmed by the XRD analyses. Specific surface area of the nanoparticles was 251 m 2 /g with dBET of 6 nm. As confirmed by TEM analyses, the particle size of the nanoparticles was 35 nm. The nanofluid with concentration of 0.05 vol % and pH of 7.42 possessed zeta potential of 53 mV, indicating a stable suspension. This nanofluid had a CHF enhancement of 92% compared to water as base fluid.