Abstract: A new kind of dragreducing liquid was developed, which has not only the dragreducing characteristics, but also the enhanced heat transfer characteristics, because of adding carbon nanotubes (CNT) into the base fluid. In this study, the base fluid was pure water; the dragreducing additive CTAC (cetyltrimethyl ammonium chloride) and multi wall CNT were added to the base fluid to make dragreducing fluids. The production process was developed, the appropriate composition fraction was found, and the thermal and rheological properties were measured. The test indicates that the fluid temperature has a strong influence on the dragreducing and heat transfer characteristics. The dragreducing characteristics does not change after the addition of CNT， but the heat transfer characteristics have been greatly enhanced. The enhanced heat transfer technology of nanofluid can be used to solve the heat transfer deterioration problem of pure dragreducing fluid.