Nanotechnology has emerged as a pivotal platform in revolutionizing cancer treatment, offering a diverse array of strategies to enhance therapeutic efficacy while minimizing collateral damage to healthy cells. This review paper extensively explores the recent breakthroughs and applications of nanotechnology in the realm of cancer treatment. The unique physicochemical properties of nanoformulations, specifically nanoparticles, enable precise customization for targeted drug delivery, a hallmark feature of effective cancer therapy. Nanoformulations leverage their diminutive size to exploit enhanced permeability and retention within tumour tissues, thereby facilitating the accumulation of therapeutic agents at the tumour site. The utilization of nanocarrier-based formulations showcases their exceptional potential for precise drug delivery, ensuring optimal therapeutic impact. Beyond drug delivery, nanotechnology has fundamentally advanced cancer diagnosis and imaging techniques. The integration of functionalized nanoparticles with contrast agents has empowered the development of highly sensitive imaging modalities such as magnetic resonance imaging (MRI), computed tomography (CT), and positron emission tomography (PET). This heightened sensitivity allows for the detection of minute tumour masses, real-time monitoring of treatment responses, and the guidance of intricate surgical interventions. Throughout this comprehensive review, we delve into the multifaceted roles of nanomaterials, including nanoparticles, nanocarriers, and nanodevices, as they address pivotal challenges posed by conventional cancer therapies. Amidst our analysis of these advancements, we critically examine the obstacles faced by nanotechnology-based treatments, ranging from potential toxicities to safety considerations.