Nanotechnology has received increasing attention and is being applied in the transportation vehicle field. With their unique physical and chemical characteristics, nanomaterials can significantly enhance the safety and durability of transportation vehicles. This paper reviews the state-of-the-art of nanotechnology and how this technology can be applied in improving the comfort, safety, and speed of transportation vehicles. Moreover, this paper systematically examines the recent developments and applications of nanotechnology in the transportation vehicle industry, including nano-coatings, nano filters, carbon black for tires, nanoparticles for engine performance enchantment and fuel consumption reduction. Also, it introduces the main challenges for broader applications, such as environmental, health and safety concerns. Since several nanomaterials have shown tremendous performance and have been theoretically researched, they can be potential candidates for applications in future environmental friendly transportation vehicles. This paper will contribute to further sustainable research and greater potential applications of environmentally friendly nanomaterials in healthier transportation vehicles to improve the transportation industry around the globe.