Nanosuspension have emerged as a promising and versatile nanotechnology-based approach for improving the solubility and bioavailability of poorly water-soluble drugs. This review article provides a comprehensive overview of the formulation, characterization and application of nanosuspension in pharmaceuticals. The article includes basic principles of nanosuspension preparation, encompassing both top-down and bottom-up methods. It delves into the selection of stabilizers as nanosuspension are sterically stabilised by steric polymers like polyethylene glycol (PEG) and other numerous stabilizers which results into product having particle size in nanometre ranges. Post processing treatment like freeze drying and spray drying can be use to impart stability (thermolabile drugs) in nanosuspension. Different characterization techniques such as electron microscopy, zeta potential, particle size analysis, x-ray diffraction essential for evaluating nanosuspensions have been discussed in this review article. Various advantages of nanosuspension have enabled its use in different dosage forms. The main body of this review focuses on the diverse applications of nanosuspensions including drug delivery, drug targeting and sustained release. Site specific delivery of poorly water-soluble drug is an emerging application of nanosuspension.