​A novel concept of treating oil reservoirs by nanofluids is being developed to improve oil recovery and reduce the trapped oil in hydrocarbon reservoirs. Nanoparticles show great potential in enhancing oil recovery under ambient conditions. In this paper, the approaches of wettability alteration by using nanofluid, stability of nanofluids, and the most reliable wettability alteration mechanisms associated with variant types of nanoparticles have been reviewed. Moreover, the parameters that have a significant influence on nanofluid flooding have been discussed. Finally, the recent studies of the effect of nanoparticles on wettability alteration have been summarised and analysed. Furthermore, this paper presents possible opportunities and challenges regarding wettability alteration using nanofluids.