Nanotechnology has a versatile use in the field of disease therapy, targeted drug delivery, biosensing, and environmental protection. The cross-linked nanosponges are one of the types of nanostructures that provide huge application in the biomedical field. They are available up to the fourth generation and can act as a payload for both kinds of hydrophilic and hydrophobic drugs. There are different methods available for the synthesis of these nanosponges as well as loading the drugs inside them. A variety of approved drugs based on nanosponges are already in the market including drugs for cancer. Other applications include the uses of nanosponges as topical agent, in improving solubility, as protein carrier, in chemical sensors, in wastewater remediation, and in agriculture. The present review discusses in detail about different applications of nanosponges and also mentions about the recent SARS-CoV-2 management using nanosponges.