The nanodiamond, which hosts nitrogen‐vacancy (NV) centers, has been levitated in vacuum either through optical tweezers or through an ion trap. It combines the advantages of the large mass and long coherent discrete internal energy levels, which makes it an ideal platform for quantum information processing and precision measurement. In this review, the quantum information processing and the precision measurement based on the levitated nanodiamond are briefly summarized. The basic physics of the levitated nanodiamond and the NV centers is first introduced. Then the methods of manipulating motional states of the nanodiamond with the NV centers are discussed. The magnetic coupling mechanisms between the NV centers and the translational mode or the torsional mode are discussed, and the method of cooling the mechanical modes with the NV centers is discussed. Several applications are discussed, such as the mass spectrometry, the gravitational acceleration measurement, etc. The levitated nanodiamond can also be used for realizing universal quantum logic gates and quantum simulation. Finally, the conclusion and perspective are given.