Innovations and discoveries are constantly being made in the medical field. Nanoparticles have contributed to many of these advances. One of the most promising applications of nanotechnology is in the field of medicine. Applications of nanotechnology for treatment, diagnosis, monitoring and control of biological systems is referred to as nanomedicine. It is a relatively newer technology based on the uses of engineered nanomaterials like liposomes, carbon nanotubes, fullerences, polymeric micelles, quantum dots. Engineered nanomaterials are medical materials available in nanometer (one-millionth of a millimeter) scale. Because of nanoscale, the molecules acquire changes in their physicochemical properties which are utilized for easier and more thorough penetration in cells. Nanomedicine has shown promising results both in diagnostics as well as therapeutics. The most striking use can be repairs at a molecular level. Like other modalities of treatment, nanomedicine also has disadvantages, however currently the benefits outweigh the risks.