Halloysite nanotubes (HNTs) have attracted considerable attention due to their unique properties and wide range of applications. This review explores HNT‐based nanocomposites, focusing on their preparation methods and improvements in mechanical, thermal, and barrier properties. Various synthesis techniques, including solution mixing, melt compounding, in situ polymerization, and surface modification, are discussed, along with their benefits and limitations. The role of HNT characteristics such as aspect ratio, dispersion, and surface chemistry in enhancing nanocomposite properties is examined. HNTs significantly boost mechanical properties, including tensile strength, Young’s modulus, and toughness, due to their reinforcement effects. Improved dispersion and interfacial adhesion between HNTs and the polymer matrix enhance these properties. HNTs also act as thermal barriers, improving heat resistance and dimensional stability, while enhancing barrier properties against gases and moisture. These synergistic effects allow for the customization of nanocomposites for specific applications in packaging, automotive, electronics, and biomedical fields. Future research should focus on optimizing synthesis methods and processing techniques to further improve HNT‐based nanocomposites’ performance. This review provides a comprehensive overview of HNT‐based nanocomposites, offering valuable insights for advancing nanomaterials science and engineering.