The natural convection heat transfer of a magnetic nanofluid in a differentially heated cavity is investigated with and without an applied external magnetic field. The effects of volume fraction, magnetic field configuration, and magnetic field strength are investigated. Spherical Fe2O3 nanoparticles with a diameter of 15–20nm are used in the nanofluids. Volume fractions ranging between 0.05% and 0.3% are tested for the case with no magnetic field, while only a volume fraction of 0.1% was tested in an externally applied magnetic field. The experiments were conducted for a range of Rayleigh numbers in 1.7×108<Ra<4.2×108. The viscosity of the nanofluid was determined experimentally. An empirical correlation for the viscosity was determined, and the stability of various nanofluids was investigated.Using heat transfer data obtained from the cavity, the average heat transfer coefficient and average Nusselt number for the nanofluids are determined. It was found that a volume fraction of 0.1% showed a maximum increase of 5.63% to the Nu at the maximum Ra. For the magnetic field study, it was found that the best-performing magnetic field enhanced the heat transfer behaviour by an additional 2.81% in Nu at Ra=3.8×108.