Synthesis of nanoparticles by microemulsion method is an area of considerable current interest. Since the discovery of microemulsions, they have attained increasing significance both in basic research and in different industrial fields. Due to their unique properties, namely, ultralow interfacial tension, large interfacial area, thermodynamic stability and the ability to solubilize otherwise immiscible liquids. The uses and applications of microemulsions are numerous in chemical and biological fields. The nanoparticles not only are of basic scientific interest, but also have resulted in important technological applications, such as catalysts, high-performance ceramic materials, microelectronic devices, high-density magnetic recording and drug delivery. The microemulsion technique promises to be one of the versatile preparation method which enables to control the particle properties such as mechanisms of particle size control, geometry, morphology, homogeneity and surface area. This review aims to give a vivid look on the use of microemulsions for synthesizing and controlling the grain size and morphology of the nanoparticles and at the same time will summarize some recent works carried out in the synthesis of organic and inorganic nanoparticles by this method