This paper offers a state‐of‐the‐art overview on vital aspects of polyurethane‐based nanocomposite coatings. Nano‐modified developments in polyurethane coatings have led to the current status and new opportunities for the formation of high performance coatings. Nanocarbon such as carbon nanotube, nanodiamond, graphene and its derivatives as well as inorganic nanoparticles have been employed as coating reinforcements. A brief description of various categories of polyurethane nanocomposite coatings is presented. Here, polyurethane/nanocarbon nanocomposites reveal multifunctional properties and high performance owing to the synergistic effect of polymer and nanofiller compared with neat polyurethane coatings and other nanocomposite coating materials. Incidentally, the type of nanoparticle, nanofiller content, polyurethane structure, processing technique and conditions may affect the final nanocomposite properties. The review also focuses on the worth of polyurethane nanocomposites in the coating sector. Consequently, the cutting edge application areas of polyurethane nanocomposite coatings such as corrosion protection, textiles, biomaterials and other technical fields are addressed. It is important to understand the challenges of weathering‐induced degradation in polyurethane nanocomposite coatings. The wide range of polyurethane nanocomposite coatings may be attained using versatility in the selection of monomeric materials. Moreover, modification of nanofillers and incorporation in appropriate polyurethane matrices can be adopted as a powerful tool to widen the applicability of nanocomposite coatings in advanced future applications. © 2018 Society of Chemical Industry