A novel concept of nanofuels, pure energetic nanoparticles or suspensions of energetic nanoparticles in a liquid carrier, is presented here as a potential energy storage carrier. This study develops a prototype reciprocating internal combustion engine (ICE) as a model system to assess the combustion process of nanofuels. Several identified potential nanofuels, including silicon, aluminium and iron, in the form of wet-fuels and dry-fuels are investigated. Nanofuel particles are known to exhibit significantly different thermophysical properties when compared to the conventional fuel. When metallic particles approach length scales on the order of nanometers, significant changes in thermophysical properties often occur. At these dimensions, the surface-area-to-volume ratio of the particle increases considerably, and this enables providing a larger contact surface area during the rapid oxidation process. Several studies have reported lower melting points and lower heats of fusion for decreasing sizes of metal particle. Key features of the experimental assessment including nanofuels formulation and injection, ignition and combustion of nanofuels, oxide particle capture and regeneration, and engine emission, wear and lubrication are being investigated. Technological issues for the realization of the concept including nanofuel production, controlled ignition and combustion, oxidized particle capture and other related issues are discussed and key challenges are identified.