Nanofluids are dilute colloidal suspensions of nanoparticlesin a base fluid that exhibit thermal properties superior than that of the conventional fluid. The application of nanofluids is to achieve the highest possible thermal properties at the smallest possible concentrations, by homogeneous dispersion and stable suspension of nanoparticles in the host fluids. Nanofluids plays vital role in various thermal applications such as automotive industries, heat exchangers, solar power generation etc. Mostly heat transfer augmentation in solar collectors is one of the key issues in energy saving, compact designs and different operational temperatures. In this paper, a comprehensive literature on thermo physical properties of nanofluids and the application of solar collector with nanofluids have been compiled and reviewed. Recent literatures indicate the conventional heat transfer using nanofluids and their specific applications in the solar collector.