A theoretical analysis is presented for heat transfer in micro-annular channel with an adiabatic wall and a heated wall with uniform wall temperature in slip flow regime. The energy equations with the boundary conditions of temperature jump are solved for the hydrodynamical and thermal fully developed laminar flow of the incompressible fluid in this microchannel. The influences of the Kn number, the ratio of inner diameter to outer diameter on the heat transfer characteristics are discussed respectively. The results show that the Nusselt number in microchannel decreases with the increasing of Kn number comparing with that in macrochannel.