Nanofluid, a simple product of nanotechnology has become a topic of attraction due to its extraordinary heat transfer performance in various areas including cooling, power generation, defense, nuclear, space, microelectronics and biomedical appliances. However, preparation and stabilization of such fluids are indeed a matter of concern for better understanding. For the last decade numerous research and development works have been done in the synthesis and stability of such materials. In this contribution, a brief review has been presented to provide an update about the preparation and stabilization methods of nanofluids.