A numerical investigation of mixed convection due to a copper–water nanofluid in an enclosure is presented. The mixed convection is governed by moving the upper lid of the enclosure and imposing a vertical temperature gradient. The transport equations for fluid and heat are modeled by using the Boussinesq approximation. A modified form of the control volume based SIMPLET algorithm is used for the solution of the transport equations. The fluid flow and heat transfer characteristics are studied for a wide range of Reynolds number and Grashof number so as to have the Richardson number greater or less than 1. The nanoparticle volume fraction is considered up to 20%. Heat flow patterns are analyzed through the energy flux vector. The rate of enhancement in heat transfer due to the addition of nanoparticles is analyzed. The entropy generation and Bejan number are evaluated to demonstrate the thermodynamic optimization of the mixed convection. We have obtained the enhancement rate in heat transfer and entropy generation in nanofluid for a wide range of parameter values.