The present study provides a comprehensive overview of the effectiveness of nanofluids (NFs) in enhancing heat pipe (HP) performance, a critical component in thermal management applications such as electronics cooling, solar power conversion, and automotive systems. Traditional heat transfer fluids suffer from low thermal conductivity and heat transfer coefficients, causing a clear reduction of thermal efficacy. This review specifically addresses these limitations of traditional heat transfer fluids used in heat pipes by analysing both experimental and computational research from the open literature. Findings indicate that a the combination of nanoparticles, such as Al2O3, CuO, and carbon nanotubes can substantially enhance the thermal conductivity, mitigate thermal interface resistance, and boost the heat transfer coefficients. Additionally, factors such as nanoparticle concentration, particle size, and heat pipe geometry significantly influence overall thermal performance. Specifically, optimum nanoparticle concentrations (0.1–0.3 wt.%) are vital, as excessive loading can deter performance. Also, the performance fluctuates across various HP types, with geometric modifications further improving thermal efficiency. Even though short-term advantages are apparent, long-term stability concerns, such as nanoparticle agglomeration, necessitate future research. This study demonstrates the potential of nanofluids in heat pipes to advance next-generation thermal management technologies across different applications.