In this study, the heat transfer and fluid flow characteristics in the unfinned and internally finned concentric passage (smooth and finned annulus) are investigated experimentally. The turbulence characteristics, mean flow, pressure drop and heat-transfer parameters in the entrance region of a concentric passage of diameter ratio 0.2 are measured. The hot-wire anemometer and the liquid-crystal technique are used for the turbulence and mean flow and the heat transfer measurements, respectively. The finned passage is designed as the fin width (W) of 2 mm, the fin height (H) of 2, 4, 6 and 8 mm and the fin pitch (P) of 20, 30 and 40 mm. Reynolds number ranges from 1.8.104 to 1.24.105 and from 1.65.104 to 7.65.104 for flow and pressure drop and heat transfer measurements, respectively. Experiments are performed for the smooth and finned concentric passages by varying flow and fin parameters and the effects of the fin pitch are investigated. The developing of fluid flow is analyzed and the variation of turbulence intensity, friction factors, local and mean convective heat transfer coefficients in the smooth and finned concentric passages are obtained. Results obtained in the finned concentric passages are compared with the results of the smooth passage. For the average Nusselt numbers and friction factor, empirical equations are developed. As a result, it is seen that the friction factor in the finned passage increases between 3.61 and 18.05 times while the average Nusselt number augments between 1.36 and 5.23 times on the inner surface and between 1.03 and 1.80 times on the outer surface.