This review centers on the significance of the advancement of nanotechnology in today's world. The emergence of nanotechnology in the last three years seems to surprise everyone. Nanomaterials are synthesized with facile techniques that satisfy the user's requirements with their unique characteristics. Nanomaterials are very novel in their properties at the atomic level. An exceptional characteristic of nanomaterials, such as their tiny size, various shapes, higher surface-to-volume ratio, surface plasmon resonance, optical properties, mechanical and electrical stability, etc., solves real practical issues. Based on dimension, nanomaterials are categorized. They are generated by either bottom-up or top-down methods. All industries search for well-developed technologies that could provide an efficient result with minimum loss. This could be achieved by employing the appropriate nanomaterials, which offer great accuracy. Nanomaterials are used in various industries, especially in the medical field, for diagnosis and treatment necessities in equipment, instruments (coating agents), and drugs and medicines, respectively. Also, nanomaterials extend their hand to energy storage (fuel cells, hydrogen evolution reactions, etc.), the environment, cosmetics, painting, sensors, etc. This review provides detailed information on the nanomaterial synthesis procedure, characteristics, and different applications from a state-of-the-art approach. Finally, a summary of the challenges and prospects of nanomaterials is added for further prospects in the field of nanotechnology.