Introduction: Herbal medicines are an important ingredient of traditional and alternative medicinal system and thus being used since ancient times. Owing to their characteristic of having lesser side effects and potential therapeutic effect they have drawn attention of pharmaceutical scientists from across the globe. Herbal medicines have now strongly captured a whooping US $62 billion market globally. Herbal medicines have been widely accepted of their potential to treat chronic diseases, low toxicity profile, cheap and wide availability etc. Methods: The Safety and efficacy of herbal drugs have played an important part in their successful commercialization. With the emergence and application of nanotechnology the bioavailability and bioactivity of herbal medicines have improved drastically. Results: Development of nano-phytomedicines by reducing their size to nano scale range, attaching it with polymers and by modifying their surface properties, solubility, permeability, eventually enhances the bioavailability of herbal formulations. Conclusion: Novel formulations like niosomes, liposomes, nanospheres, phytosomes etc. can be exploited in this area. However, novel nano-phytomedicines comes with its own pros and cons. This article extensively reviews herbal nano-medicines with its reported success and failures.