The present study deals with numerical investigation of effects of different parameters on enhancement or retardation of the heat transfer rate in an annular vertical cylinder filled with saturated porous medium. The heat transfer is assumed to take place by mixed convection mode. The thermal non-equilibrium approach is considered. The inner surface of the annular cylinder is maintained at constant wall temperature whereas the outer surface remains at ambient temperature. The governing partial differential equations are solved using finite element method. The results are discussed for the effects of Peclet number, interphase heat transfer co-efficient and thermal conductivity ratio. (C) 2011 Elsevier Ltd. All rights reserved.