Today more than ever, many industries facing thermal challenges have a pressing need for ultrahigh-performance cooling. However, conventional coolants are inherently poor heat transfer fluids. Therefore, a strong need exists for new and innovative concepts to achieve ultrahigh-performance cooling in thermal management systems. Although particle-in-liquid suspensions or slurries are frequently used in industry, they are not suitable for heat transfer applications, due to severe problems caused by large particles in those suspensions or slurries. The major problem with traditional suspensions containing millimeter-or micrometer-sized particles is the rapid settling of these particles. If the fluid were kept circulating to prevent much settling, the microparticles would damage the walls of the pipe, wearing them thin. Other problems include large increases in pressure drop and clogging, particularly in small thermal control systems.Nanofluids are a new type of heat transfer fluid engineered by uniform and stable suspension of nanometer-sized particles into liquids. Most nanofluids are very dilute suspensions of nanoparticles in liquids and contain a very small quantity, preferably less than 1% by volume, of nanoparticles. The average size of nanoparticles used in nanofluids may vary from 1 to 100 nm (preferably < 10 nm). Because nanoparticles are so small, they remain in suspension almost indefinitely and dramatically reduce erosion and clogging compared with the suspension of larger particles. Also, their larger surface area may improve heat transfer.A number of experiments show that stable suspensions of a small amount of nanoparticles in traditional fluids produce dramatic changes in the thermal properties of base fluids. It has been shown that stable nanofluids have distinctive features such as high thermal conductivities at very low nanoparticle concentrations (Eastman et al., 2001;Patel et al., 2003), a nonlinear relationship between thermal conductivity and particle concentration Hong et al., 2005;Murshed et al., 2005;Chopkar et al., 2006), strong temperature-and size-dependent conductivity (Das et al., 2003bb;Chon et al., 2005) and a threefold increase in critical heat flux in pool boiling compared to base fluids (You et al., 2003;Vassallo et al., 2004). Furthermore, recent experiments have shown that some nanofluids enhance the convective heat transfer coefficient by up to 100% compared to that of water (Xuan and Li, 2003; Nanofluids: Science and Technology,