Nanotechnology showed great promise and impact on administration of therapeutic agents owing to its advantages over contemporary delivery systems. Nanoscale carriers like nanosponges represent a novel category of hyper crosslinked polymer structures with nanosized cavities which can be filled with variety of active moieties (hydrophilic as well as hydrophobic). These nanocarriers can circulate around the body until they found the specific target site and adhere on the surface and release the active moiety in a predictable and controlled manner, resulting in more effective delivery of a given dosage. Nanosponge technology helps to reduce drug associated side effects, improve stability, increase elegance and improve the flexibility of formulations, administered orally, parenterally and topically. Among nanosponges, cyclodextrin-based nanosponges (CDNS) are smart versatile carriers studied widely for drug delivery applications. Statistically, it have presented that approximately 40% of active moieties marketed currently and about 90% of active moieties in their preliminary phase confront problems regarding to solubility. In the past decade, the number of studies describing CDNS has dramatically increased. In the present chapter, scientists working in arena of nanotechnology can get an idea of fabrication, characterization and therapeutic utilities of nanosponges.