Computational Fluid Dynamics (CFD) is utilized to study entropy generation for the rarefied steady state laminar 2-D flow of air-Al2O3 nanofluid in square cavity equipped with two solid fins at the hot wall. Such flows are of great importance in industrial applications, such cooling of the electronic equipment’s and nuclear reactors. In the current study, effects of Knudsen number (Kn), Rayleigh number (Ra) and the nano solid particles volume fraction (ϕ) on the entropy generation are investigated. The values of parameters considered in this work are as follows: 0≤Kn≤0.1, 〖10〗^3≤Ra≤〖10〗^6,0≤ϕ≤0.2. Length of the fins (LF) is considered to be fixed and equals to 0.5 m, whereas the location of the fins with respect to the lower wall (HF) is set to 0.25 and 0.75 m. Simulations demonstrate that there is an inverse direct effect of Kn on the entropy generation. Moreover, it is found that when Ra is less than 104, the entropy generation, due to the flow, increases as ϕ increases. In addition, the entropy generation due to the flow will decrease at Ra greater than 104 as ϕ increases. Moreover, the entropy generation due to heat will increase as both the ϕ and Ra increase. In addition, a correlation model of the total entropy generation as a function of all of the investigated parameters in this study is proposed. Finally, an optimization technique is adapted to find out the conditions at which the total entropy generation is minimized