Entropy generation in a circular pipe is analyzed numerically. A two-dimensional solution for the velocity ant temperature profiles is obtained considering temperature dependent thenmophysical properties. Uniform wall heat flux case is considered as the thermal boundary condition. The distribution of the entropy generation rate is investigated throughout the volume of the fluid as it flows through the pipe. Engine oil is selected as the working fluid. In addition, ethylene glycol and air are used in a parametric study. The total entropy generation rate is calculated by integration over the various cross-sections as well as over the entire volume. The results are compared with those obtained for the constant viscosity case. A considerable discrepancy is found between the two cases since the viscosity of these fluids is highly sensitive to the temperature variation.