Miniaturization of devices has enabled the availability of several useful handheld products for healthcare and computers. Efforts to control the intense heat developed by the microchips used in thisequipment and other high temperature operating systems like boilers and fast breeder reactors, etc., have led to the development of nanofluids. The uniform dispersion of low concentration submicron and nano metallic particles in a base fluid substantially enhances the thermal conductivity of the fluid used. The great potential of nanofluids increases the heat transfer performance of the cooling media. The current paper presents the synthesis of 0.025 vol% Al and Cu bused nanofluids by two-step mechanical method and their characterization by XRD, SEM, and nano-zeta analyzer. The apparent thermal conductivity of the fluids was estimated using available theoretical models and the results are compared. Steric mode stabilization has been employed to prevent agglomeration of the particles and to ensure the dispersion stability of the nanofluid.