Nanofluids, have attracted considerable interest for their enhanced thermal properties, making them promising for automotive applications. This review examines recent advancements in nanofluid utilization within automotive systems, focusing on thermal management improvements in engine cooling, lubrication, and fuel efficiency. Studies have demonstrated that nanofluid-based coolants can increase thermal conductivity by 15–40%, leading to an increase in heat transfer efficiency and a reduction in engine operating temperatures by 5–10°C. Experimental results indicate that using Al₂O₃-water nanofluids in radiators improves OHTC by up to 25% compared to conventional ethylene glycol-water coolants. Additionally, nanolubricants infused with CNTs or graphene oxide has shown a 10–20% reduction in engine friction and wear, prolonging component lifespan. The integration of nanofluids as fuel additives has demonstrated a brake thermal efficiency improvement of up to 11.56%, while also reducing specific fuel consumption by approximately 8–10%. However, challenges remain in stability, compatibility, and large-scale feasibility. This paper provides a comprehensive overview of key achievements, highlights comparative performance metrics, and identifies future research directions for optimizing nanofluid applications in the automotive industry.