This paper envisages a mechanism of heat conduction behind the thermal conductivity enhancement observed in graphene nanofluids. Graphene nanofluids have been prepared, characterized, and their thermal conductivity was measured using the transient hot wire method. The enhancements in thermal conductivity are substantial even at lower concentrations and are not predicted by the classical Maxwell model. The enhancement also shows strong temperature dependence which is unlike its carbon predecessors, carbon nanotube (CNT) and graphene oxide nanofluids. It is also seen that the magnitude of enhancement is in-between CNT and metallic/metal oxide nanofluids. This could be an indication that the mechanism of heat conduction is a combination of percolation in CNT and Brownian motion and micro convection effects in metallic/metal oxide nanofluids, leading to a strong proposition of a hybrid model. © 2011 American Institute of Physics.