<p>Atopic dermatitis (AD) is a chronic inflammatory skin disorder that markedly affects the quality of life of patients and their families. Although conventional treatments such as corticosteroids and immunomodulators are effective in controlling symptoms, their prolonged use is often associated with adverse effects and limited long-term safety. In recent years, herbal therapeutic agents have gained increasing attention due to their natural origin, favourable safety profile, and therapeutic potential in managing skin inflammation. Herbal nanocarrier-based topical delivery systems, including cubosomes, transferosomes, ethosomes, liposomes, niosomes, nanoemulsions, phytosomes, polymeric nanocapsules, nanomicelles, and nanosponges, have been made possible by recent developments in nanotechnology. These systems allow the regulated release of phytoconstituents, enhance dermal penetration through a compromised skin barrier, and improve physicochemical stability. Compared to traditional herbal formulations, new preclinical research shows enhanced skin hydration, decreased erythema, and restored barrier function. This review emphasizes the pathophysiology and triggering factors of atopic dermatitis, as well as recent advances in herbal nanotechnology-based drug delivery systems for improved topical management of AD.</p>