Improvements in surgical technique, chemotherapy, and radiotherapy have enhanced the prognosis of sarcoma patients, but have since reached a plateau in recent years. Novel approaches have been sought but with limited results. Nanomedicine offers solutions in diverse areas of sarcoma therapy including diagnosis and treatment. Several varieties of nanoparticles, including multifunctional nanoparticles, are available that localize the biodistribution of conventional chemotherapeutics to the tumor site. Also, nanoparticles loaded with chemotherapeutic drugs have the ability to overcome drug resistance which is a major obstacle impeding the progress of the treatment. Multifunctional nanoparticles, which have the potential to further augment the bioavailability of drugs, are being actively investigated. In this review, we will discuss the application of nanoparticles for improving the treatment of sarcoma patients.