• The effect of nanofluids’ lower viscosity values on heat transfer was investigated. • Annular flow propagation of water-ethylene glycol based Fe 3 O 4 nanofluid was studied. • Maximum heat transfer enhancement was obtained for highest concentration. • Addition of the nanoparticles resulted in delay to reach steady-state conditions. • The performance evaluation criteria, pressure drop and exergy analysis were studied. Natural circulation loops with double pipe heat exchangers at heating and cooling ends have a potential to be used in the refrigeration systems as an alternative to suction line heat exchangers. The heat transfer capability of such natural circulation loops depends on the geometrical parameters as well as thermophysical properties of the working fluid. This study aims to investigate the effect of water-ethylene glycol mixture based Fe 3 O 4 nanofluids (0.01, 0.05 and 0.1 vol.%) on the annular flow propagation and heat transfer in the annuli of double pipe heat exchanger at low pressure side of the refrigeration cycle. In addition to increased non-dimensional velocity values due to the lower viscosity and higher non-dimensional temperature values with expanded temperature gradient, improved heat transfer by nanofluids shows that they can be used as secondary heat transfer fluids at low-pressure side in refrigeration systems. Although the maximum transferred (13.6% improvement compared to base fluid) heat observed for the highest concentration, the nanofluids with smallest concentration has the minimum pressure drop value (25% reduction compared to base fluid) and the highest performance evaluation criteria (PEC) value (PEC = 1.08) with tiny increase in exergy destruction (1.45% compared to base fluid).