In spite of some medications, millions of peoples are dying every year due to cancer. Additionally, the survival patients suffer from various serious side effects due to the use of available anti-neoplastic medicines. The development of nanoparticles based drugs is seems to be effective providing low side effects and targeted action on cancer cells. The present article describes the state-of-art of nano drugs in cancer chemotherapy. The nano drugs are targeted selective and specific towards tumors only resulting into better treatment. The important molecules used for preparation nano drugs are cisplatin, carboplatin, bleomycin, 5-fluorouracil, doxorubicin, dactinomycin, 6-mercaptopurine, paclitaxel, topotecan, vinblastin and etoposide etc. The most commonly used materials for preparing nanoparticles carriers are dendrimers, polymer, liposome, micelles, inorganic, organic nanoparticles etc. A survey was carried out on the drugs available in the market and given in tabular form. However, the commonly used nano drugs till date are liposome dendrimer and some other materials based nanoparticles. Attempts have been made to explain mechanism of action of nano drugs. The future perspectives have also been highlighted in to the conclusion part.