Numerical calculations are carried out for natural convection induced by a temperature difference between a cold outer square enclosure and a hot inner circular cylinder. A two-dimensional solution for unsteady natural convection is obtained, using the immersed boundary method (IBM) to model an inner circular cylinder based on the finite volume method for different Rayleigh numbers varying over the range of 10(3)-10(6). The study goes further to investigate the effect of the inner cylinder location on the heat transfer and fluid flow. The location of the inner circular cylinder is changed vertically along the center-line of square enclosure. The number, size and formation of the cell strongly depend on the Rayleigh number and the position of the inner circular cylinder. The changes in heat transfer quantities have also been presented. (C) 2007 Elsevier Ltd. All rights reserved.