Nanotechnology developments have resulted in the emergence of many forms of pharmaceutical products like Nanoemulsions, Nano micelles, Nano sponges and Nano niosomes. In recent years, through nanotechnology, Nano sponges (NS) has acquired remarkable strength in drug delivery. Later, as they effectively overcome the problems like increasing the solubility of water-insoluble drugs, increasing bioavailability, reducing drug toxicity, avoiding drug degradation and targeting the drug to a specific site, which offers controlled drug delivery for topical use. They can also be used as a carrier as biocatalysts for vaccines, enzymes, proteins and antibodies. Nano sponges are better than micro sponges because the diameter of Nano sponge is below 1μm and the diameter of the microsponge is 10-25μm with the void size around 5-300μm, thereby decreases side effect and protect the drug from degradation. This review study to expound the characteristics of β-cyclodextrin based Nano sponges like factors affecting the formation of Nano sponges, applications in topical formulation and comparison of different marketed products of Nano sponges along with cyclodextrin in various drug delivery and offer high drug loading compared to other Nanocarriers