Cooling the drill bit is one of the major functions of drilling fluids, especially in high temperature deep drilling operations. Designing stable drilling fluids with proper thermal properties is a great challenge. Identifying appropriate additives for the drilling fluid can mitigate drill-bit erosion or deformation caused by induced thermal stress. The unique advantages of nanoparticles may enhance thermal characteristics of drilling fluids. The impacts of nanoparticles on the specific heat capacity, thermal conductivity, rheological, and filtration control characteristics of water‐based drilling fluids were experimentally investigated and compared in this study. Al2O3, CuO, and Cu nanoparticles were used to prepare the water-based drilling nanofluid samples with various concentrations, using the two-step method. Transmission Electron Microscopy (TEM) and X-Ray Diffraction (XRD) were utilized to study the nanoparticle samples. The nanofluids stability and particle size distribution were, furthermore, examined using Dynamic Light Scattering (DLS). The experimental results indicated that thermal and rheological characteristics are enhanced in the presence of nanoparticles. The best enhancement in drilling fluid heat capacity and thermal conductivity was obtained as 15.6% and 12%, respectively by adding 0.9 wt% Cu nanoparticles. Furthermore, significant improvement was observed in the rheological characteristics such as the apparent and plastic viscosities, yield point, and gel strength of the drilling nanofluids compared to the base drilling fluid. Addition of nanoparticles resulted in reduced fluid loss and formation damage. The permeability of filter cakes decreased with increasing the nanoparticles concentration, but no significant effect in filter cake thickness was observed. The results reveal that the application of nanoparticles may reduce drill-bit replacement costs by improving the thermal and drilling fluid rheological characteristics and decrease the formation damage due to mud filtrate invasion.