Abstract: Nanofluids are potential heat transfer fluids with enhanced thermo physical properties and heat transfer performance can be applied in many devices for better performances (i.e. energy, heat transfer and other performances). Evaluating the heat transfer enhancement due to the use of nanofluids has recently become the center of interest for many researchers. This newly introduced category of cooling fluids containing ultrafine nanoparticles (1–100 nm) has displayed fascinating behavior during experiments including increased thermal conductivity and augmented heat transfer coefficient compared to a pure fluid. In this paper, a comprehensive literature on the applications and challenges of nanofluids have been compiled and reviewed in Automobile sector. Latest up to date literatures on the applications and challenges in terms of PhD and Master thesis, journal articles, conference proceedings, reports and web materials have been reviewed and reported. Recent researches have indicated that substitution of conventional coolants by nanofluids appears promising in Automobile radiator. Nanofluids have great potential to improve automotive and heavy –duty engine cooling rates by increasing the efficiency, lowering the weight and reducing the complexity of thermal management. Alternatively, it is beneficial to design more compact cooling system with smaller and lighter automobile radiators.