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Al2O3 nanoparticles have been synthesized by the hydrothermal method for heat transfer nanofluid as an alternative to new cooling fluid. Nanoparticles were synthesized using AlCl3 as a precursor and urea was used as a supporting agent. The hydrothermal process was carried out at 150oC for 17 hours. The hydrothermal product was dried and then calcined at 600oC for 1 hour. The resulting Al2O3 nanoparticles were analyzed using XRD, FTIR, and TEM. Nanofluids were prepared from these nanoparticles by dispersing them into water as a base fluid. Nanofluid characterization was carried out through Critical Heat Flux (CHF) measurements. According to the XRD data, the Al2O3 nanoparticles produced were gamma alumina with a crystallite size of 4.9 nm. FTIR data shows the presence of OH groups on the surface of the nanoparticles. Al2O3 nanofluids made were known to be stable with an average zeta potential of 50 mV. Compared to water, CHF enhancement of this nanofluid increased by 80%.