Owing to their superior optical and thermal properties over conventional fluids, nanofluids represent an innovative approach for use as working fluids in direct-absorption solar collectors for efficient solar-to-thermal energy conversion. The application of nanofluids in direct-absorption solar collectors demands high-performance solar thermal nanofluids that exhibit exceptional physical and chemical stability over long periods and under a variety of operating, fluid dynamics, and temperature conditions. In this review, we discuss recent developments in the field of nanofluids utilized in direct-absorption solar collectors in terms of their preparation techniques, optical behaviours, solar thermal energy conversion performance, as well as their physical and thermal stability, along with the experimental setups and calculation approaches used. We also highlight the challenges associated with the practical implementation of nanofluid-based direct-absorption solar collectors and offer suggestions and an outlook for the future.