Abstract: Natural circulation loop/system adapted to suppress flow instability inherent to fluid medium due to low driving force and non-linearity of the natural circulation process including regenerative feed back between flow rate, driving force and pressure drop by selective metallic oxide nanoparticle base fluid media such as AI2O3 dispersed in water. Advantageously even small amounts of nanoparticles dispersed in water in the natural circulation systems are found to free the loop from undesirable instability ties and importantly also surprisingly enhance the flow rate thereby facilitating avoiding premature critical heat flux, operation and control problems of such natural circulation based heat recovery. The invention thus provides simple and efficient mode of natural circulation heat recovery with flow stability and enhanced flow rate at reduced cost, favouring wide scale application and use of such system for variety of end uses/applications.