Nanotechnology has become important in various disciplines of technology and science. It has proven to be a potential candidate for various applications ranging from biosensors to the delivery of genes and therapeutic agents to tissue engineering. Scaffolds for every application can be tailor made to have the appropriate physicochemical properties that will influence the in vivo system in the desired way. For highly sensitive and precise detection of specific signals or pathogenic markers, or for sensing the levels of particular analytes, fabricating target-specific nanomaterials can be very useful. Multi-functional nano-devices can be fabricated using different approaches to achieve multi-directional patterning in a scaffold with the ability to alter topographical cues at scale of less than or equal to 100 nm. Smart nanomaterials are made to understand the surrounding environment and act accordingly by either protecting the drug in hostile conditions or releasing the "payload" at the intended intracellular target site. All of this is achieved by exploiting polymers for their functional groups or incorporating conducting materials into a natural biopolymer to obtain a "smart material" that can be used for detection of circulating tumor cells, detection of differences in the body analytes, or repair of damaged tissue by acting as a cell culture scaffold. Nanotechnology has changed the nature of diagnosis and treatment in the biomedical field, and this review aims to bring together the most recent advances in smart nanomaterials.