The recent advancements in the field of nanotechnology have aided in the development of targeted novel drug delivery systems. The introduction of nanosponges, a nanotechnology product, has helped overcome various conventional problems such as drug toxicity, poor bioavailability, and the release of drugs to targeted sites. Nanosponges can be loaded with various types of drugs, both hydrophilic and lipophilic, which also helps increase the bioavailability of poorly soluble drugs and molecules. They have the ability to bind to specific targeted sites and prolong drug release through controlled release from the formulation. Nanosponges are prepared by various methods, including the solvent method, quasi-emulsion diffusion method, emulsion solvent diffusion method, and ultrasound-assisted synthesis. They can be used widely for the delivery of drugs via oral, topical, and parenteral administration. Additionally, they serve as effective carriers for enzymes, vaccines, proteins, and antibodies. This article reviews the basics, preparation, application, and advancements of nanosponges.