Nanoparticles have enormous applications in textiles, cosmetics, electronics, and pharmaceuticals. But due to their exceptional physical and chemical properties, particularly antimicrobial, anticancer, antibacterial, anti-inflammatory properties, nanoparticles have many potential applications in diagnosis as well as in the treatment of various diseases. Over the past few years, nanoparticles have been extensively used to investigate their response on the neuronal cells. These nanoparticles cause stem cells to differentiate into neuronal cells and promote neuronal cell survivability and neuronal cell growth and expansion. The nanoparticles have been tested both in in vitro and in vivo models. The nanoparticles with various shapes, sizes, and chemical compositions mostly produced stimulatory effects on neuronal cells, but there are few that can cause inhibitory effects on the neuronal cells. In this review, we discuss stimulatory and inhibitory effects of various nanoparticles on the neuronal cells. The aim of this review was to summarize different effects of nanoparticles on the neuronal cells and try to understand the differential response of various nanoparticles. This review provides a bird’s eye view approach on the effects of various nanoparticles on neuronal differentiation, neuronal survivability, neuronal growth, neuronal cell adhesion, and functional and behavioral recovery. Finally, this review helps the researchers to understand the different roles of nanoparticles (stimulatory and inhibitory) in neuronal cells to develop effective therapeutic and diagnostic strategies for neurodegenerative diseases.