Traditional delivery system encounters obstacles stemming from its constrained solubility, stability and targeted release, while nanoencapsulation holds immense promise in revolutionizing drug delivery system. It significantly enhances the solubility and bioavailability of poorly water-soluble drugs, overcoming a major hurdle in pharmaceutical development. Nanoencapsulation ensures the protection of sensitive drug molecules from degradation, thereby extending their shelf life and preserving their efficacy. The nanoscale size of encapsulated particles facilitates targeted delivery to specific sites, while minimizing off-target effects and systemic toxicity and it enables the controlled release of active molecules over extended periods, allowing for sustained effects and reducing the frequency of dosing. The versatile nature of nanoencapsulation techniques permits the incorporation of various functional materials in the nano sized carriers. This review explores nanocarriers such as liposomes, polymeric nanoparticles and solid lipid nanoparticles for targeted drug delivery and controlled release, discussing methods like solvent evaporation and drying techniques to enhance drug properties. It also examines their application beyond pharmaceuticals, highlighting their use in releasing beneficial microbes and bioactives in food and nutrition, as well as in agriculture for improved efficacy and environmental sustainability.