Nanofluids are suspension of highly conductive nano‐sized particles in conventional fluids that may be applicable as ultrafast cooling agent to extend the thermal performance of cooling devices. However, before considering the feasibility as coolant for high heat flux components, a thorough investigation of the long‐term stability of nanofluids is of paramount importance. Preparation of extremely stable nanofluids has become one of the main technical challenges. The present contribution aims to summarize the recent developments in the preparation, characterization, and stabilization of nanofluids based on the information available in literatures. Lastly, existing needs and attainable solution to challenges, leading to the upcoming research in the development of highly stable nanofluids, are discussed.