The twenty-first century is experiencing a wave of technologies and innovations making use of unique features of nanofluids, in applications such as industrial and process heating, air conditioning and refrigeration systems, heat pipes, solar energy, thermal storage systems, electronic cooling systems and others. Recent literature indicates that suspending solid nanoparticles in traditional working fluids can enhance heat transfer rates by increasing thermal conductivity and heat transfer coefficients. However, there is a wide variation in the extent of heat transfer enhancements reported in the literature. In this review, which mainly focuses on the research published within the last 5 years, experimental investigations from recent developments of nanofluids usage and performance in various heat transfer systems are summarised. In addition, heat transfer mechanisms in nanofluids, the challenges and future direction of nanofluids regarding heat transfer enhancement are discussed. Popular preparation methods of nanofluids and the models of thermophysical properties such as thermal conductivity and viscosity have been reviewed.