Liver disease is an increasing global issue, influenced by factors like heavy alcohol use, genetic factors, and contact with harmful substances. Nanoparticles have become potential therapeutic agents for the diagnosis and treatment of liver disease, especially alcoholic liver disease (ALD) and liver cancer. Several factors such as oxidative stress, toxicity from acetaldehyde, inflammation, immune system abnormalities, and gut-liver axis disruption contribute to ALD. By focusing on particular cells, tissues, or molecular pathways, nanoparticles facilitate early diagnosis and treatment. Nanoparticles have the ability to modulate transcription factors like NF-κB, STAT3, Nrf2, and β-catenin, and can be utilized to deliver therapeutic agents such as resveratrol and siRNA to target specific pathways associated with liver cancer. Various types of nanoparticles, such as cerium oxide, bilirubin, and iron oxide nanoparticles, have demonstrated the ability to modulate crucial transcription factors and signaling pathways related to liver disease. Additionally, nanoparticles can improve imaging methods like MRI, CT, ultrasound, and fluorescence imaging, providing new opportunities to enhance clinical results. This review highlights the potential of nanoparticles in advancing liver disease diagnosis and treatment, and underscores the need for further research to fully explore their therapeutic potential.