Abstract Fertilizers play a crucial role in enhancing the productivity of plants. However, low nutrient use efficiencies of conventional fertilizers (CFs) associated with several losses have led to widespread multi‐nutrient deficiencies in the soil and lower productivity. Furthermore, their excess application has caused serious damage to the soil and environment. Recently, nanotechnology has broadened its applicability in plant nutrition and has paved a way for the production of nanoparticle‐induced fertilizers. Therefore, nanofertilizers stand out as promising alternative to CFs for sustainable agriculture. Nanofertilizers are composed of nanoparticles that contain macro‐ and micronutrients and deliver them in a controlled way to the plant's rhizosphere. This contributes to the enhanced nutrient utilization efficiency. This review delves into the effect of nanotechnology‐based nanofertilizers in different forms and dosages on soil properties and plant development. Additionally, the mechanism underlying absorption of nanofertilizers and their advantages and limitations have also been discussed. A thorough comparison between conventional and nanofertilizers has also been made in this review in terms of their nutrient delivery mechanism, efficiency and application. As the use of nanoparticle‐embedded fertilizers in plant nutrition is still in its infancy, this review can serve as a guide for future investigations to enhance the knowledge of the use of nanoparticles in the mineral nutrition of different crops.