Turbulent mixed convection in heated vertical annulus is investigated using Direct Numerical Simulation (DNS) technique. The objective of this study is to find out the effect of buoyancy on turbulent mixed convection in heated vertical annulus. Downward and upward flows with bulk Reynolds number 8500, based on hydraulic diameter and mean velocity, have been simulated to investigate turbulent mixed convection by gradually increasing the effect of buoyancy. With increased heat flux, heat transfer coefficient first decreases and then increases in the upward flow due to the effect of buoyancy, but it gradually increases in downward flow. The mean velocity and temperature profiles can not be explained by the wall log laws due to the effect of buoyancy, too. All simulation results are in good quantitative agreement with existing numerical results and in good qualitative agreement with existing experimental results.