A nanofluid is a particle suspension that consists of base liquids and nanoparticles. Nanofluid has greater potential for heat transfer enhancement than traditional solid-liquid mixture. By accounting for the external and internal forces acting on the suspended nanoparticles and interactions among the nanoparticles and fluid particles, a lattice Boltzmann model for simulating flow and energy transport processes inside the nanofluids is proposed. The irregular motion of the nanoparticles and inherent dynamic behavior of nanofluids are discussed. The distributions of suspended nanoparticles inside nanofluids are calculated.