Transparent conductors are essential to the fabrication of transparent electronics such as touch panels and displays, making them crucial elements in the current electronics industry. With the rapid surge of interest in stretchable electronics, transparent conductors now are also required to be stretchable. Therefore, new approaches to developing transparent and stretchable conductors (TSCs) are needed to replace conventional rigid transparent conductors. Constructing nanocomposites of various nanomaterials and substrates is one of the most promising approaches to developing TSCs due to the nanomaterials' geometrical, mechanical, electrical, and optical properties. Herein, the progress of carbon‐ and metal‐based nanomaterials and conductive polymers composites are investigated and categorization of TSCs based on types of nanomaterials and fabrication techniques are discussed. Lastly, a review of the demonstrated state‐of‐the‐art applications of TSCs and a perspective about the future of TSCs based on nanomaterials are provided.