There is a growing range of applications of nanoparticle-suspension flows with or without heat transfer. Examples include enhanced cooling of microsystems with low volume-fractions of nanoparticles in liquids, improved tribological performance with lubricants seeded with nanoparticles, optimal nanodrug delivery in the pulmonary as well as the vascular systems to combat cancer, and spray-coating using plasma-jets with seeded nanoparticles. In order to implement theories that explain experimental evidence of nanoparticle-fluid dynamics and predict numerically optimum system performance, a description of the basic math modeling and computer simulation aspects is necessary. Thus, in this review article, the focus is on the fundamental understanding of the physics of nanofluid flow and heat transfer with summaries of microchannel-flow applications related to cooling and lubrication.