The creation of a targeted drug delivery system has been made possible by the most current creative advances in nanotechnology. Use of specialised drug delivery systems is necessary to effectively target a molecule to a specific site with the aid of a drug delivery system. The invention of the nanosponge solves issues such as drug toxicity, poor bioavailability, and predictable drug release. Nanosponges are tiny sponges that can move through the body to a particular spot and adhere to the surface, releasing medication in a regulated and predictable way. It is common practice to build nanosponges with three-dimensional (3D) porous architectures, narrow size distributions, and high entrapment efficiencies for cancer therapy and drug delivery. The porous shape that characterizes nanosponges in nature makes them uniquely able to entrap drug molecules. Cyclodextrins and carbonyl or di-carboxylate (Crosslinkers) are used to crosslink the ingredients in the formulation of nanosponges. High specificity, biocompatibility, degradability, and prolonged release behavior have all been utilized in nanosponge-based delivery systems for cancer therapy. In addition to the currently used processes, which include melting techniques, solvent techniques, ultrasound-assisted preparation, and emulsion solvent diffusion methods, eco-friendly approaches for the production of nanosponges still need to be discovered. The nanosponges utilized as anticancer agents are the major subject of this review. In-depth discussion is regarding the various factors and formulation process for the nanosponges.