Nanobiotechnology is an emerging and innovative field of science, engineering and technology as it deals with properties on nanoscale dimension and can make revolution in applied science. Nanoparticles are used in novel drug delivery, diagnostics and imaging because of their adaptability and extensive properties. Throughout the world, biodegradable nanoparticles are considered as a carrier for site specific delivery of genes, drugs, vaccines and other biomolecules in the body. The present review encompasses biodegradable nanoparticles in resolving biocompatibility issues, improved vaccine or drug encapsulation, less toxicity and appropriate release profile for various vaccines, drugs, and biomolecules that are effectively used in the field of medicine. Furthermore, the use of these particles in the different disease therapies such as inflammatory diseases, cardiovascular diseases, infectious diseases, cerebral diseases, cancer, ophthalmic diseases and diabetes is reviewed. Efforts are focused on identifying the potential gaps in treatment failures and suggesting suitable way outs to combat these ailments.