The recent outbreak of coronavirus disease (COVID-19) has challenged the survival of human existence in the last 1 year. Frontline healthcare professionals were struggling in combating the pandemic situation and were continuously supported with literature, skill set, research activities, and technologies developed by various scientists/researchers all over the world. To handle the continuously mutating severe acute respiratory syndrome coronavirus-2 (SARS-CoV-2) requires amalgamation of conventional technology with emerging approaches. Nanotechnology is science, engineering, and technology dealing at the nanoscale level. It has made possible the development of nanomaterials, nano-biosensors, nanodrugs, and vaccines for diagnosis, therapy, and prevention of COVID-19. This review has elaborately highlighted the role of nanotechnology in developing various detection kits such as nanoparticle-assisted diagnostics, antibody assay, lateral flow immunoassay, nanomaterial biosensors, etc., in detection of SARS-CoV-2. Similarly, various advancements supervene through nanoparticle-based therapeutic drugs for inhibiting viral infection by blocking virus attachment/cell entry, multiplication/replication, and direct inactivation of the virus. Furthermore, information on vaccine development and the role of nanocarriers/nanoparticles were highlighted with a brief outlining of nanomaterial usage in sterilization and preventive mechanisms engineered to combat COVID-19 pandemic.