Nano-technology is expanding its horizon in various science and technology fields. In civil engineering, soil is a complex material and used for various functions and applications. Meanwhile, sometimes an effective soil stabilization technique is needed to fulfil the site criteria and can be achieved by adopting various methods e.g., physical, chemical, thermal or reinforcement using geotextiles and fabrics. The mechanism of soil stabilization using nanomaterials is still unexplored and open to prospective researchers. The present article attempts to touch and explore the possibilities of nano-technology in soil improvement and its applications in various civil engineering works. Microstructural analysis of the nanomaterials treated soils using the latest equipment has also been discussed. The study interprets that the use of nano materials is still limited, due to their high cost and sophisticated handling procedures. Though the use of nanoparticles in soil stabilization results in extraordinary improvements in various soil properties, the improved soil properties could be utilized for various geotechnical projects. The present study bridges the past findings to the present scenario of nanomaterials in soil improvement.