Nanocomposite hydrogels or nanogels (a nanoparticles composed of a hydrogel) are nanomaterial filled, swollen nanosized networks of deliquescent or amphiphilic compound chains. It may be developed by drug - polymer interactions and to create 3D advanced networks. Nanogel may be ready by many strategies just like the particle gelation, Inverse mini emulsion, Dispersion, Chemical cross linking, fabrication of biopolymers and so on. It can be characterized by SEM, DSC, FTIR, Drug content, Particle size, Zeta potential and drug efficiency.  Further, it can be evaluated by in vitro drug release and in vivo study in suitable animal modeling. In this review article, we have focused on basic methodology of nanogels, evaluation terms, their application in industry with future prospects for the researchers. Keywords: Nanogel; methods of nanogel preparation; evaluation parameters and their applications.