In this paper, a numerical simulation has been performed to study the fluid flow and heat transfer around a square cylinder utilizing Al2O3-H2O nanofluid over low Reynolds numbers. Here, both Reynolds and Peclet numbers are varied within the range of 1 to 40and the volume fraction of nanoparticles (φ) is varied within the range of 0<φ<0.05. Two-dimensional and steady mass continuity, momentum and energy equations have been discretized using Finite Volume Method (FVM). SIMPLE algorithm has been applied for solving the pressure linked equations. The effect of volume fraction of nanoparticles on fluid flow and heat transfer were investigated numerically. It was found that at a given Reynolds number, the Nusselt number, drag coefficient, recirculation length, and pressure coefficient increases by increasing the volume fraction of nanoparticles.