This Small Business Technology Transfer (STTR) Phase I project will demonstrate the feasibility of a two-phase controllable flow in microchannels. The fluid consists of a carrier fluid, nano-magnetic particles, and additives. The proposed work will also produce low-cost, nano-magnetic particles using a novel scaled-up synthesis process. The objectives of the proposed research are to design a large-scale, affordable, magnetic nanocrystalline powder synthesis system; and, to study the flow of fluids consisting of these powders in microchannels. The nano-powders will be characterized for their morphology and magnetic properties. Theoretical and experimental studies will be performed to understand the flow of the magnetic fluid in microchannels under magnetic fields. Effects of channel dimension, fluid viscosity and density; and particle size and magnetic properties, will be examined. <br/><br/>The controllability characteristic of the proposed microfluidics technology may have a significant impact on certain applications, such as, controllable actuators and sensors.