Many studies have been conducted to increase heat transfer in fluid. One of the various heat transfer enhancement techniques is suspending fine metallic or nonmetallic solid powder in traditional fluid. Nanofluid is defined as a new kind of heat transfer fluid containing a very small quantity of nanometer particles that are uniformly and stably suspended in a liquid. This study investigates the effect of nanofluid containing diamond, CuNi and CuAg nanometer particles, and proposes the heat transport mechanism of nanofluid. The test result shows that the thermal conductivity of nanofluid is much higher than that of traditional fluid, and the increasing rate of the conductivity is dependent on the conductivity of the solid metal.