Plasma technology has been widely applied in the ozone production, material modification, gas/water cleaning, etc. Various nanomaterials were produced by thermal plasma technology. However, the high temperature process and low uniformity products limit their application for the high value added chemicals synthesis, for example the functional materials or the temperature sensitive materials. Microplasma has attracted significant attentions from various fields owing to its unique characteristics, like the highpressure operation, non-equilibrium chemistry, continuous-flow, microscale geometry and self-organization phenomenon. Its application on the functional nanomaterial synthesis was elaborately discussed in this review paper. Firstly, the main physical parameters were reviewed, which include the electron temperature, electron energy distribution function, electron density and the gas temperature. Then four representative microplasma configurations were categorized, and the proper selection of configuration was summarized in light of different conditions. Finally the synthesis, mechanism and application of some typical nanomaterials were introduced. Plasma Chem Plasma Process (2015) 35:925-962