Herbal medicines have been used from years throughout the world; especially in India, herbal medicines are in high demand. The use of herbal medicines has increased because of their ability to treat different diseases with fewer side effects. The development of novel drug delivery system (NDDS) is of considerable importance to overcome various constraints like poor bioavailability, in vivo stability, aqueous insolubility, intestinal absorption and unspecific site of action. The integration of the Nano science as a NDDS in traditional system of medicine enriches the potential of herbal drugs for treating chronic diseases such as cancer and ravaging diseases. The synthesis of nanoparticles can be achieved by adopting the novel methodologies such as Polymer nanoparticle, Magnetic nanoparticle and Metallic nanoparticle depending on characteristic of the nanoparticles. The advanced technologies will shed lights for characterizing the nanoparticles to determine the toxicity profiles for their physical and chemical properties. This review article will provide a brief discussion of Nanoparticles synthesis, characterization by various techniques for production and its future impact of nanotechnology on smart herbal drugs.