This research conducts an extensive numerical investigation into the enhancement of heat transfer in wavy-walled channels using aluminum oxide-water nanofluids. The study examines the impact of key parameters, including geometric aspects (wave spacing ratio: 0-1), operational conditions (Reynolds number: 5,000-20,000), and varying nanofluid concentrations (1-6% by volume). The results indicate that zero wave spacing combined with a nanofluid concentration of 4% provides the most favorable thermal performance, resulting in a heat transfer enhancement of up to 2.5 times when compared to conventional smooth channels. While the wavy channel geometries significantly improve heat transfer, they also impose additional pressure drops, revealing a critical trade-off between enhanced thermal performance and the increased pumping power required. The study highlights the balance necessary between maximizing heat transfer and maintaining operational efficiency, particularly in systems where space is limited. These findings contribute valuable insights to the design of heat exchange systems that demand both high thermal efficiency and compact dimensions, such as those used in electronics cooling or energy-efficient HVAC systems. Additionally, the study explores the influence of the Reynolds number on both thermal and hydrodynamic behavior within the wavy channels, providing a thorough performance evaluation across different operational ranges. The conclusions drawn from this investigation offer practical guidance for optimizing heat exchanger designs, taking into account both thermal resistance and overall system performance under varying conditions.