The presence of nanoparticles in heat exchangers ascertained increment in heat transfer. The present work focuses on heat transfer in a longitudinal finned tube heat exchanger. Experimentation is done on longitudinal finned tube heat exchanger with pure water as working fluid and the outcome is compared numerically using computational fluid dynamics (CFD) package based on finite volume method for different flow rates. Further 0.8% volume fraction of aluminum oxide (Al2O3) nanofluid is considered on shell side. The simulated nanofluid analysis has been carried out using single phase approach in CFD by updating the user-defined functions and expressions with thermophysical properties of the selected nanofluid. These results are thereafter compared against the results obtained for pure water as shell side fluid. Entropy generated due to heat transfer and fluid flow is calculated for the nanofluid. Analysis of entropy generation is carried out using the Taguchi technique. Analysis of variance (ANOVA) results show that the inlet temperature on shell side has more pronounced effect on entropy generation.