This review provides a comprehensive reflection of the recent advances in nanomaterials and processes for carbon dioxide (CO2) capture and conversion. It is divided into two sections: carbon capture, and conversion into useful by‐products. The latest developments in nanotechnology‐enabled carbon capture processes along with an overview of the conventional technologies for carbon capture are described. Descriptions of by‐product conversion include conversion into important chemicals, liquid fuels, and hydrocarbon such as carbonate, methane, methanol, and formic acid. Finally, perspectives on the future directions in carbon capture and storage technology are presented. © 2012 Society of Chemical Industry and John Wiley & Sons, Ltd