The preferable cooling solution for micro-electronic systems could be forced flow boiling in micro heat exchangers. Nanoparticle deposition affects nucleate boiling via alteration of surface roughness, capillary wicking, wettability, and nucleation site density. In this study, flow boiling was investigated using water and nanofluids in a single rectangular microchannel at different heat fluxes. The observed change in flow regime transition revealed the effect of nanoparticles on the onset of nucleate boiling (ONB) and the onset of bubble elongation (OBE). The addition of nanoparticles was found to stabilize bubble nucleation and growth and increase heat transfer in the thin film regions.