Conventional metal matrix composites (MMCs) with particles, whiskers, and fibers as reinforcements have been developed primarily for structural applications. Despite their long history of progress, however, MMCs exhibit sluggish performance enhancements. Low-dimensional nanomaterials, such as carbon nanotubes, graphene, boron nitride nanotubes, boron nitride nanosheets, MXene, and metal dichalcogenides, have emerged as effective nano-sized fillers for developing metal matrix nanocomposites (MMNCs) to overcome the performance limitations of conventional materials. Although various low-dimensional nanomaterial fillers have been considered as promising candidates for enhancing the multifunctional performance of MMNCs, structural properties of MMNCs filled with 1-D or 2-D nanomaterials have been a major area of research. Taking advantage of the unique properties of low-dimensional nanomaterials, multifunctional MMNCs have exhibited a remarkable trend in the development of advanced materials to meet the complex demands of emerging application areas. In this review, the current state of recent research in the field of 1-D and 2-D nanomaterial-filled MMNCs is discussed. Additionally, we have examined a vast array of fabrication processes for tailoring the microstructures and interfaces of MMNCs. Moreover, discussions on the structural and functional properties, applications, challenges, and future prospects of multifunctional MMNCs filled with low-dimensional nanomaterials have also been presented.