A hybrid nanostructure consisting of 1D carbon nanotubes and 2D graphene was successfully synthesized. Nanofluids were made by dispersing the hybrid nanostructure in deionized (DI) water and ethylene glycol (EG) separately, without any surfactant. Later the thermal conductivity and heat transfer coefficient of the nanofluids were experimentally measured. Meanwhile, multiwalled carbon nanotubes (MWNT) were prepared by catalytic chemical vapor deposition (CCVD), and hydrogen exfoliated graphene (HEG) was synthesized by exfoliating graphite oxide in a hydrogen atmosphere. The hybrid nanostructure (f-MWNT+f-HEG) of functionalized MWNT (f-MWNT) and functionalized HEG (f-HEG) was prepared by a post mixing technique, and the sample was characterized by powder X-ray diffraction, Raman spectroscopy, field emission scanning electron microscopy and transmission electron microscopy. Thermal conductivity of the nanofluids was measured for different volume fractions of f-MWNT+f-HEG at different temperatures. The hybrid nanostructure dispersed in the DI water based nanofluid shows a thermal conductivity enhancement of 20% for a volume fraction of 0.05%. Similarly, for a Reynolds number of 15500, the enhancement of the heat transfer coefficient is about 289% for a 0.01% volume fraction of f-MWNT+f-HEG. © 2011 The Royal Society of Chemistry.