Abstract Nutraceuticals, derived from various foods, have gained significance for promoting health and managing diseases. Despite their nutritional value, challenges such as low solubility, poor diffusion, gastrointestinal instability, and limited bioavailability impede their effectiveness as preventive agents. Nanotechnology-driven drug delivery systems, including liposomes, nanospheres, nanoemulsions, micelles, and nanocrystals, offer innovative solutions to enhance efficacy and oral bioavailability. These advanced formulations not only augment the physicochemical properties and therapeutic efficacy of nutraceuticals but also enable targeted delivery. A diverse range of nanocarriers, encompassing liposomes to inorganic nanoparticles, addresses specific challenges in nutraceutical formulations, exhibiting unique properties such as heightened stability, palatability, and lymphatic uptake for increased bioavailability. Lipid nanocarriers facilitate the permeation of neuroprotective nutraceuticals through the blood–brain barrier, while liposomal delivery systems shield bioactives from oxidation and light, accommodating both hydrophilic and lipophilic compounds. In addition, polymeric nanocarriers, exemplified by micelles, outperform lipidic counterparts, ensuring controlled release. Natural sources contribute to the development of polymeric nanoparticles, offering controlled delivery with reduced toxicity. Polysaccharides and proteins diversify delivery platforms, encompassing the loading of nutraceuticals and functional nutrients. Nanotechnology emerges as a pivotal player in advancing the solubility, bioavailability, and stability of bioactives, with ongoing research focused on refining formulations, like curcumin, for effective cancer and inflammation management. While these advancements hold promise, careful consideration of challenges, including toxicity and cost, is imperative to fully unlock the potential of nanotechnology in nutraceutical delivery, ensuring both safety and cost-effectiveness. The significance of microencapsulation and nanotechnology in the nutraceutical delivery system is thoroughly explored in this comprehensive review.
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