The most emerging branch in pharmaceutical sciences known as “Pharmaceutical nanotechnology” presents new tools, opportunities and scope, which are expected to have significant applications in disease diagnostics and therapeutics. Pharmaceutical nanotechnology comprised of nano-sized products which can be transformed in numerous ways to improve their characteristics. A Nanosponge is a novel and emerging technology which offers targeted & controlled drug delivery for topical as well as oral use. Nanosponges are based on nano, polymer-based spheres that can suspend or entrap a wide variety of substances and then be incorporated into a formulated product such as a gel, lotions, cream, ointments, liquid or powder. This technology offers entrapment of ingredients and thus reduced side effects, improved stability, increases elegance and enhanced formulation flexibility. Nanosponge is the part of advance drug delivery. It is a specific aiding system for targeted drug delivery of both kind of drugs either it is lipophilic or hydrophilic in a controlled manner. These have three dimensional networks or scaffold which is filled with drug and porous insoluble nanoparticles with a crystalline or amorphous structure and have spherical shape or swelling properties. The polarity and dimension of the polymer mesh can be easily varied by varying the type of cross-linker and degree of cross-linking.This review article deals with the general introduction of nanosponges, classification of nanosponges, characteristic features of nanosponges, their advantages, disadvantages, chemicals used in their preparation, preparation methodologies, factors affecting on their preparation, mechanism of action and evaluation parameters along with some applications of nanosponges.