The cosmetics industry has boomed in recent years as one of the markets that holds enormous growth potential. Among several industrial sectors, the cosmetics industry has considered nanotechnology-based principles and implemented in product management practices. Out of 1000 registered products available on the global market, up to 13% were referred to as products for cosmetic use. A large number of nanoscale materials with unique physicochemical properties are currently being used in the cosmetics formulations or recommended for future use as nano-systems or novel nanocarriers to encapsulate active ingredients for their efficient delivery through the skin barriers. These nano-systems have demonstrated potential in targeted-oriented drug delivery and offered remarkable features such as better stability, site-specificity, excellent encapsulation efficiency, prolonged action, enhanced skin penetration, and high drug-loading capability. Nevertheless, nanotoxicology research has raised concerns over the excessive use of nanomaterials/nanoparticles in cosmetics, as nanoparticles might enter the skin resulting in health problems. This review provides insights on the characteristic physicochemical features and the potential use of various nanostructured materials, including liposomes, noisome, nanoemulsions, nanoparticles, carbon nanomaterials (graphene, fullerenes), carbon nanotubes, dendrimers, and nanospheres in cosmeceuticals. Moreover, the regulatory aspects of nanomaterials in cosmetics, along with concluding remarks and outlook in this field, were also vetted.