Nanotechnology serves as a new approach in the treatment of many diseases which has very large number in the morbidity and mortality. Biosensing and molecular imaging assisted with nanotechnology helps in identifying and diagnosis of many diseases. These nanomaterials also helps in the targeted drug delivery to the specific region. The existence of nanomaterials have become increased over the period of 40 years. Nanoparticles helps in the diagnosis of several diseases especially detection of cancer biomarkers. This technology also has a greater ability in the management of neurodegenerative diseases such as Alzheimer’s disease, autoimmune diseases, skin diseases, renal diseases, tuberculosis and cancer. It also extended its application to targeted drug delivery, diagnosis and pharmacogenetics to individualize the treatment options for several diseases and disorder. Apart from this, nanoparticles also showed more efficiency for antimicrobial, antifungal and antiviral therapies. Nanotechnology has greater applications in the medical and pharmaceutical field due to its unique characteristics. Due to their smaller size, these nanomaterials have the ability to penetrate deeper into the biological tissues or skin and can elicit their therapeutic activities. Nanotechnology extended its application in the recent pandemic COVID-19 by the production of vaccines using lipid nanoparticles and also conquered the difficulties faced by the normal drug delivery systems. In this article, we can discuss about the various types and applications of nanotechnology.