In this study we investigate the control of flow characteristics and heat transfer of a drag-reducing dilute cationic surfactant solution in a channel, in order to develop a highly efficient heat exchanger. As has been reported by many authors, addition of certain polymers or surfactants reduces heat transfer in drag-reduced water flow. Therefore, other measures must be taken in order to compensate the reduction in heat transfer. Specifically, this study investigates the effects of non-isothermal heating on drag-reduced flow: experiments were conducted in order to study passive control for effecting the drag-reduction state by employing temperature-dependent physical properties and heat transfer augmentation by complex flow. In addition, velocity and temperature profiles were measured under the coexistence of turbulent and drag-reducing flow in order to clarify the effect of drag reduction. It was confirmed that the drag reduction state was changed and diminished due to the temperature rise near the wall, especially the condition in the region of 50 < y(+) < 100 greatly influence on drag reduction of pipe flow. (C) 2004 Elsevier Ltd. All rights reserved.