Nano-gold dispersed water based nanofluid has been prepared following the chemical reduction method. Crystallite size, particle size/shape/morphology, and purity of the nanoparticles have been characterized using X-ray diffraction, scanning and transmission electron microscopy and energy dispersion spectroscopy, respectively. The degree of thermal conductivity enhancement of the nanofluid (with respect to the base fluid) as a function of concentration and size of gold nanoparticle has been determined using the transient hot-wire technique. The degree of enhancement increases with increase in concentration and decrease in size of nanoparticles. The maximum enhancement recorded is similar to 48% at 0.00026 vol.% concentration and 21 nm average particle size. (C) 2010 Elsevier Inc. All rights reserved.