Nanofluid is an advanced kind of fluid, which contain nanometer sized (10-9 m) solid particles that are known as nanoparticles. Nanoparticles enhance the property of normal fluid. In past five years, nanorefrigerant has become the input for large number of experimental and vapour compression systems because of shortage of energy and environmental considerations. The conventional refrigerants have major role in global warming and depletion of the ozone layer. Therefore, there is need to improve the performance of vapour compression refrigeartion system with the help of using suitable refrigerant. Nearly all the works carried out in relation with nanofluids in vapour compression is regarding their applications in systems like domestic refrigerators and industrial purposes etc. The present paper investigate the performance of the nanorefrigerant in vapour compression cycle and the challenges of using nanorefrigerants in vapour compression cycle.