In this study, fully developed laminar flow and convective heat transfer in an internally finned tube heat exchanger are investigated numerically. The flow is assumed to be both hydrodynamically and thermally developed with uniform outside wall temperature. Parameters of the thickness, length, and number of fins and thermal conductivity ratio between fin and working fluid are varied to obtain the friction factor as well as Nusselt number. The results show that the heat transfer improves significantly if more fins are used; however, the pressure drop turns out to be large in this heat exchanger. In addition, it is found that the emergence of closed-loop isotherms between the areas of two neighboring fins leads to heat transfer enhancement in the internally finned tube. When the fin number is smaller than 14, there appears a maximum Nusselt number at about 0.8 of the dimensionless fin length. Finally, an experiment is conducted to verify the numerical results.