The CFD simulation of heat transfer characteristics of a nanofluid in a circular tube under constant heat flux was considered using Fluent software (version 6.3.26) in the laminar flow. Al2O3 nanoparticles in water with concentrations of 0.5%, 1.0%, 1.5%, 2% and 2.5% were used in this simulation. All of the thermo-physical properties of nanofluids were assumed to be temperature independent. Two particle sizes with average size of 20 and 50 nm were used in this research. It was concluded that heat transfer coefficient increased by increasing the Reynolds number and the concentration of nanoparticles. The maximum convective heat transfer coefficient was observed at the highest concentration of nano-particles in water (2.5%). Furthermore, the two nanofluids showed higher heat transfer than the base fluid (water) although the nanofluid with particles size of 20 nm had the highest heat transfer coefficient.