This paper presents a numerical investigate on CuO-water nano-fluid and heat transfer in a backwardfacing step with and without obstacle. The range of Reynolds number varied from 75 to 225 with volume fraction on CuO nanoparticles varied from 1 to 4 % at constant heat flux was investigated. Continuity, momentum, and energy equations with finite volume method in two dimensions were employed. Four different configurations of backwardfacing step (without obstacle, with obstacle of 1.5 mm, with obstacle of 3 mm, with obstacle of 4.5 mm) were considered to find the best thermal performance. The results show that the maximum augmentation in heat transfer was about 22 % for backward-facing step with obstacle of 4.5 mm and using CuO nanoparticles at Reynolds number of 225 compared with backward-facing step without obstacle. It is also observed that increase in size of recirculation region with increase of height obstacle on the channel wall has remarkable effect on thermal performance. The results also found that increases in Reynolds number, height obstacle, and volume fractions of CuO nanoparticles lead to increase of pressure drop.