In this paper the effect of Al-water Nano fluid, as working fluid, on the efficiency of a parabolic solar collector was investigated numerically. The temperature field, thermal efficiency, mean-outlet temperatures have been evaluated and compared for the conventional parabolic collectors and Nano fluid based collectors. Further, the effect of various parameters such as concentration ratio, volume fraction of nanoparticles, receiver length and fluid velocity has been studied. The results show that, in comparison with water as absorption medium using the Nano fluids as working fluid increase the efficiency.