The rheological behavior of nanofluids published in recent research papers and the relevant patents are reviewed in this article. Effects of various factors such as preparation, nanoparticle and base fluid properties, concentration, temperature, surface charge, and aggregation etc. on the rheological behavior of nanofluids are discussed. Brownian motion and nanoparticle aggregation are found to be the major mechanisms for rheological properties of nanofluids compared to the micro-sized suspensions. The importance of microstructure as means of understanding the mechanisms behind the rheological and heat transfer behavior of nanofluids is also disclosed.