This Small Business Technology Transfer (STTR) Phase II project seeks to investigate the commercial feasibility of new processes capable of incorporating phase change materials (PCMs) and multi-wall carbon nanotubes (MWCNT) into micro- and nano-capsules thereby producing particles with novel thermal and fluid properties. The primary objective is to take advantage of MWCNT exceptional thermal properties to enhance the thermal performance nano/microencapsulated phase change material (N/MPCM) slurry. Thermally enhanced N/MPCM slurries can provide palpable benefits in the thermal management of commercial and industrial processes and products, from microelectronics devices to large industrial facilities, by providing considerable additional heat capacity and better heat transfer performance. The combined effect of nano/microencapsulated MWCNTs and phase change materials present a unique opportunity to improve the performance of heat transfer fluids beyond current levels. A series of experiments will be carried out to quantify the degree durability, heat transfer enhancements in laminar and turbulent conditions, and in typical heat exchangers. The broader impact/commercial potential of this project will have a lasting impact on the entire heat transfer industry. Direct impacts include lower flow rates, lower pressure drop, smaller heat transfer area and improved heat transfer effectiveness. The project will also elucidate how the new fluid performs in commercially available heat exchangers. The project will also provide unique educational opportunities to undergraduate and graduate students. The success of the project will broaden scientific and technological understanding of enhanced heat transfer fluids in industry as well as in academia. Indirect impacts include enhanced living standard and improved competitiveness. Successful commercialization of the proposed concept will find applications in biomedical, aerospace, homeland security, and energy generation.