As a method to develop an enhanced heat transfer fluid, the fine particles of a phase-change material were mixed with a conventional heat transfer fluid. Paraffin, which can be obtained easily in domestic market, was used for the phase-change material and water was used as a carrier fluid. Fine liquid particles of paraffin were formed in water as an emulsion by using an emulsifier, and they were cooled rapidly to become solid particle, resulting in paraffin slurry. The average diameter of produced solid particles was inversely proportional to the amount of the added emulsifier, which was theoretically proved. The produced paraffin slurry was tested thermally in heat transfer test section having a constant-heat-flux boundary condition. The test section was made of a circular stainless-steel pipe, which was directly heated by the power supply having a maximum of 50 Volts-500 Amperes. DSC(Differential scanning calorimeter) tests showed that two kinds of phase change were involved in the melting of paraffin, and it was explained in two different ways. A five- region-melting model was developed by extending the conventional three-region-melting model, and was used to obtain the local bulk mean temperatures of paraffin slurry in the heating test section. The local heat transfer coefficient showed a maximum where the bulk mean temperature of the paraffin slurry reached at the melting temperature of paraffin.