Nanotechnology is rapidly expanding research area, encompassing the development of man-made materials in nanometer size range. Nanoscale drug delivery system using various nanomaterials is emerging technology for the rational delivery of many chemotherapeutic agents. Nanoparticles attracted the scientists across many disciplines to engineer many desired properties that might otherwise be incompatible on a single device. Formulation scientists are facing the challenges such as poor solubility and bioavailability of the newly invented drugs. One of the approaches to face the above challenge is to develop the particulate carrier system. Solid lipid nanoparticle or liposphere or nanosphere system is the most feasible particulate carrier system which is an alternative to nanoemulsions, liposomes and polymeric nanoparticles. This system offers added advantages in comparison to other related particulate drug delivery systems. The present review emphasizes on various basic and applied aspects of solid lipid nanoparticles in novel drug delivery system especially techniques involved in their production, characterization and various applications. It also focuses on the drug loading capacity, drug incorporation and factors affecting drug release from this colloidal system.