Sputter deposition of atoms onto liquid substrates aims at producing colloidal dispersions of small monodisperse ultrapure nanoparticles (NPs). Since sputtering onto liquids combines the advantages of the physical vapor deposition technique and classical colloidal synthesis, the review contains chapters explaining the basics of (magnetron) sputter deposition and the formation of NPs in solution. This review article covers more than 132 papers published on this topic from 1996 to September 2021 and aims at providing a critical analysis of most of the reported data; we will address the influence of the sputtering parameters (sputter power, current, voltage, sputter time, working gas pressure, and the type of sputtering plasma) and host liquid properties (composition, temperature, viscosity, and surface tension) on the NP formation as well as a detailed overview of the properties and applications of the produced NPs.