The cosmetic industry is rapidly rising worldwide. To overcome certain deficiencies of conventional cosmetics, nanomaterials have been introduced to formulations of nails, lips, hair, and skin for treating/alleviating hyperpigmentation, hair loss, acne, dandruff, wrinkles, photoaging, etc. Innovative nanocarrier materials applied in the cosmetic sector for carrying the active ingredients include niosomes, fullerenes, liposomes, carbon nanotubes, and nanoemulsions. These exhibit several advantages, such as elevated stability, augmented skin penetration, specific site targeting, and sustained release of active contents. Nevertheless, continuous exposure to nanomaterials in cosmetics may pose some health hazards. This review features the different new nanocarriers applied for delivering cosmetics, their positive impacts and shortcomings, currently marketed nanocosmetic formulations, and their possible toxic effects. The role of natural ingredients, including vegetable oils, seed oils, essential oils, fats, and plant extracts, in the formulation of nanocosmetics is also reviewed. This review also discusses the current trend of green cosmetics and cosmetic regulations in selected countries.