Introduction: Nanoscale materials have attracted a great deal of attention of many researchers and academician in mechanical engineering because of their size and shape dependent thermal properties. The attractiveness of its superior thermal properties compared to its base materials is the main reason for the effective utilization of nanomaterials for the energy systems. The rapid development and researches in nanotechnology led to the development of new class of heat transfer fluid called nanofluid for heat transfer enhancement. The nanoparticles dispersed in the fluid increase the surface area, heat capacity and thermal conductivity of the fluid making it very suitable for heat transfer enhancement (1). Methods: Silver being a safe material with higher thermal conductivity of 429 W/mK can be extensively used for the heat transfer applications. Silver-water nanofluid was prepared by dispersing silver nanoparticles of sizes 20, 30-50 and 50-80 nm in the volume concentrations of 0.01, 0.05 and 0.1%. Polyvinyl pyrrolidone (PVP) has been used as surfactant to stabilize the nanofluid. Thermal conductivity of nanofluid was measured by kD2 Pro thermal analyzer. The stability of nanofluid was analyzed by sedimentation technique, pH measurement, zeta potential and particle size distribution. The effect of surfactant on the thermal conductivity enhancement and stability of nanofluid was studied (1,2). Then the investigations on the heat transfer and pressure drop of silver-water nanofluid in a circular tube under constant wall heat flux condition were carried out in laminar and turbulent flow regimes. Results & Discussions: Among the three sizes of silver nanoparticles used in the investigation, nanofluid with 20 nm exhibited better thermal conductivity enhancement and stability due to lower size. The addition of surfactant improved the stability of nanofluid but caused reduction in thermal conductivity enhancement slightly. Increase of concentration of nanoparticles from 0.01 to 0.1% improved the thermal conductivity of nanofluid up to 50% (1). Experimental study on use of silver-water nanofluid for heat transfer applications showed enhancement in heat transfer coefficient of nanofluid up to 36% and 74% respectively for laminar and turbulent flow conditions. However, the addition of nanoparticles increases the pressure drop slightly. But the higher enhancement of heat transfer overcomes the increase of pressure drop of nanofluid. The proposed correlations for the prediction of Nusselt number and friction factor showed good agreement with the experimental results (3.4). Conclusions: Lower size and lower concentrations of silver water showed better hydrothermal performance of heat transfer systems. The effect of pressure drop and erosion problem due to the addition of nanoparticles will be minimized with low concentrations and lower size of silver nanoparticles. It can be a suitable nanofluid for the thermal energy systems requiring improvement in their performance. Keywords: Silver Nanoparticles, Nanofluid, Thermal conductivity, Heat transfer