well, it has thermal paste already applied to the bottom of the heatsink, although if you want better cooling performance, i suggest removing that with rubbing alcohol, and applying your own, which you would have to buy. for even better cooling performance and overclocking, buy this:http://www.newegg.com/Product/Product.aspx?Item=N82E16835185142
it cools extremely well, and comes with good thermal paste as a gift. there are 100s of ways to apply thermal paste, some people dab it on, and let the cpu disperse it, some people paint it on like you would with say, nail polish, some people put a dab in the center and smooth it out with a small cardboard tab. I do the last as it is much more macho, eh?