Abstract: A new and innovative nanofluid is provided including carbide-derived carbon nanoparticles suspended in a base fluid, and a method of preparing the same. In one example, the inventors have demonstrated that a nanofluid including CDC nanoparticles suspended in a base fluid of water had an increased thermal conductivity as compared to water alone. In other examples, the provided nanofluid may include CDC nanoparticles suspended in a base fluid other than water, such as antifreeze mixtures or other suitable cooling or heating fluids. During preparation of the provided nanofluid, the base fluid and CDC nanoparticles mixture may be subjected to sonication. In some instances, the CDC nanoparticles may be functionalized, such as by a carboxylation process. In some instances, the CDC nanoparticles may be emulsified, such as by being mixed with a surfactant.