The cosmetics industry is a dynamic, ever-changing one, particularly in light of the introduction of new technology that have produced innovative formulas with both medicinal and cosmetic advantages. Significant improvements and developments in cosmetic formulations and delivery systems could be facilitated by nanotechnology. The application of nanotechnology in cosmetic formulations is still a relatively new, highly promising, and thoroughly studied field. Nanocosmetics demonstrates its functions through a variety of delivery mechanisms, such as lipid nanocarrier systems, metallic or polymeric nanoparticles, nanocapsules, dendrimers, and nanosponges. The limitations of traditional cosmetics are addressed and new beneficial characteristics are introduced through the use of nanotechnology in cosmetics. Nanomaterials improve product performance and customer needs. Applications involving skin, hair, nails, lips, and teeth have been extensively studied in the fields of nanocosmetics. This has led to the replacement of many traditional cosmeceuticals with nanocosmeceuticals. However, nanotoxicological studies have raised concerns about the potential health hazards of nanocosmeceuticals, particularly regarding skin penetration and subsequent toxic effects. This review summarizes the various nanotechnology-based approaches currently used in the delivery of cosmetics and nanomaterials used in cosmetics. It discusses the advantages as well as the potential health and environmental risks associated with these products. The research also looks at the regulatory status of cosmeceuticals, comparing and contrasting national and international norms.