Next generation Concentrating Solar Power (CSP) system requires high operating temperature and high heat storage capacity heat transfer fluid (HTF), which can significantly increase the overall system efficiency for power generation. In the last decade several research going on the efficacy of ionic liquids (ILs) as a HTF in CSP system. ILs possesses superior thermophysical properties compare to currently using HTF such as Therminol VP-1 (mixture of biphenyl and diphenyl oxide) and thermal oil. However, advanced thermophysical properties of ILs can be achieved by dispersing small volume percentage of nanoparticles forming nanofluids, which is called Nanoparticle Enhanced Ionic Liquids (NEILs). In the present study NEILs were prepared by dispersing 0.5% Al 2 O 3 nanoparticles (spherical and whiskers) in N-butyl-N, N, N-trimetylammonium bis(trifluormethylsulfonyl)imide ([N 4111 ][NTf 2 ]) IL. Viscosity, heat capacity and thermal conductivity of NEILs were measured experimentally and compared with the existing theoretical models for liquid–solid suspensions. Additional, the convective heat transfer experiment was performed to investigate thermal performance. The thermal conductivity of NEILs enhanced by ∼5%, heat capacity enhanced by ∼20% compared to the base IL, which also gives 15% enhancement in heat transfer performance.