Antibiotics in poultry feed to boost growth performance are becoming increasingly contentious due to concerns over antimicrobial resistance development. Essential oils (EOs), as natural, plant-derived compounds, have demonstrated antimicrobial and antioxidant properties. EOs may potentially improve poultry health and growth performance when included in poultry feed. Nevertheless, the incorporation of EOs as nutritional additives is hindered by their high volatility, low water solubility, poor intestinal absorption, and sensitivity to environmental conditions. Recently, nanoencapsulation strategies using nanoformulations have emerged as a potential solution to these challenges, improving the stability and bioavailability of EOs, and enabling targeted delivery in poultry feed. This review provides an overview of the antioxidant and antibacterial properties of EOs, the current limitations of their applications in poultry feed, and the recent advancements in nano-engineering to overcome these limitations. Furthermore, we outline the potential future research direction on EO nanoformulations, emphasizing their promising role in advancing sustainable poultry nutrition.Highlights• Essential oils (EOs) are known as powerful antioxidants and antibacterial agents.• EOs have a high potential to replace antibiotics as feed additives.• Nanoformulations of EOs have shown improved bioactivity and storage stability of EOs.• Nanoformulation promotes the bioavailability and gut adsorption of EOs as feed additives.