Nanotechnology, which involves manipulating matter at the atomic and molecular scales to produce structures and devices ranging from 1 to 100 nm, is increasingly being applied in agriculture. Nanoscale materials possess distinct optical, electrochemical, and mechanical properties that enable the smart, targeted delivery of pesticides, fertilizers, and genetic materials to plants, as well as rapid sensing and on‐site monitoring of plant health, soil fertility, and water quality in a digital format. This review explores the application of nanotechnology in agriculture, examining the challenges and benefits related to all aspects of crop production, with a particular focus on regulatory issues. Key findings indicate that nanotechnology can improve crop production and reduce the environmental footprint of agriculture through precise input management. However, several critical issues need to be addressed, including the limited knowledge of the long‐term environmental impacts associated with agricultural nanotechnology and the ambiguity of current regulations. This underscores the need for further research to elucidate its impact on soil, water, and environmental and human health, to inform evidence‐based regulations. © 2024 The Author(s). Journal of the Science of Food and Agriculture published by John Wiley & Sons Ltd on behalf of Society of Chemical Industry.