Nanofluids are the dilute suspensions of nanomaterials with distinctive and enhanced features. Nanofluids can be used in a variety of industrial applications because of improved thermophysical properties. Stability of nanofluids is the only quandary factor which decreases the efficiency of such smart fluids in engineering applications. The information and studies on interaction of nanomaterials with the liquid have significant importance toward their usage in industrial applications. Agglomeration among particles is a common issue due to interactive forces, which effects the dispersion, rheology, and overall performance of nanosuspensions. Characterization of nanofluids plays an important role to evaluate the stability of nanofluids. The effect of agglomeration on the stability of nanofluids can be reduced by introducing different mechanical and chemical techniques to prolong dispersion of suspended particles in liquids. Complete understanding on the stability of nanofluids can lead to the preparation of different combinations of stable nanofluids with enhanced properties for variety of applications. © 2017, Springer International Publishing Switzerland.