Numerical calculations are carried out for the natural convection in a square enclosure with two hot cylinders induced by temperature difference between a cold outer rectangular cylinder and two hot circular cylinders. A two-dimensional solution for unsteady natural convection is obtained, using the immersed boundary method (IBM) to model two inner circular cylinders based on finite volume method, for different Rayleigh numbers varying over the range of 10³ to 10?. The study goes further to investigate the effect of the location of two cylinders on the heat transfer and fluid flow. The location of inner circular cylinders is changed vertically along the center-line of square enclosure. The changes of heat transfer quantities have been presented.