The drug delivery technology landscape has become highly competitive and rapidly evolving as more and more developments in delivery systems are being integrated to optimize the efficacy and cost effectiveness of therapy. In addition new classes of pharmaceuticals, biopharmaceuticals are fuelling rapid evolution of drug delivery technology. These new drugs typically cannot be effectively delivered by conventional means. Hence, benefits from targeted, localized delivery of therapeutic agents are other driving forces for the current market. Nanosponge technology has been introduced to facilitate controlled release of drugs over the time in order to reduce systemic toxicity and severe reactions. Nanosponges consist of nanoporous particles that can suspend or entrap a wide variety of substances, and then be incorporated into a dosage form. They release their active components on a time mode and also in response to other stimuli (rubbing, temperature, pH etc.), that are used mostly for topical and recently for other routes of administration. Nanosponge delivery system (NDS) provides increased efficacy with enhanced safety, extended product stability, improved formulation flexibility, reduced side effects and superior aesthetic properties in an efficient and novel manner. Adding up they are non-irritating, non-mutagenic, nonallergenic and non-toxic. In short nanosponges encompass many favourable characteristics which make them a versatile drug delivery vehicle. The present review explores current standing of nanosponges in drug delivery in great detail.