Nanoparticle technology has emerged as a promising approach for dermal drug delivery due to its ability to improve drug penetration into the skin, enhance drug stability, and minimize side effects. Various types of nanoparticles, including liposomes, polymeric nanoparticles, dendrimers, solid lipid nanoparticles (SLNs), nanostructured lipid carriers (NLCs), and inorganic nanoparticles, have been explored for dermal drug delivery. The characteristics of nanoparticles, such as size, surface charge, and surface modification, can significantly affect their dermal penetration and drug release. Formulation factors, including surfactants and stabilizers, can also impact nanoparticle performance. In vitro and in vivo models are commonly used to evaluate the efficacy and safety of nanoparticle-based dermal drug delivery. Despite the potential benefits, there are also safety concerns associated with nanoparticle use, which require further investigation. Regulatory considerations must also be taken into account when developing nanoparticle-based dermal drug delivery systems. Future research should focus on addressing the challenges associated with nanoparticle-based dermal drug delivery, such as safety and regulatory issues, and exploring the potential applications of nanoparticle technology for combination therapy and transdermal delivery of larger molecules. Overall, nanoparticle-based dermal drug delivery holds great promise for improving the treatment of various dermatological conditions.