The effect of porous rib arrays on the heat transfer and entropy generation of laminar nanofluid flow inside annuli is studied numerically, using a two-phase mixture model for nanofluid flow simulation. Porous media, nanoparticles, and vortex formation are simultaneously affecting the characteristics of the system. Results showed that the permeability and height of porous ribs have significant effects on the thermal performance of system. Vortex zones also affect the trend of variation of entropy and performance numbers, and local optimums exist for these two parameters. The role of nanofluid in heat transfer enhancement in recirculating zones is more significant for higher volume fractions.