Nanofluids have gained significant attention as a promising solution to several challenges in drilling operations. Nanoparticles, due to their exclusive properties such as high specific surface area, strong adsorption potential, and excellent thermal conductivity, offer significant potential to improve the efficiency and performance of drilling processes. Regardless of the advancements in drilling fluids and techniques that have improved borehole stability, hole cleaning, and extreme operational condition (HTHP) management, limitations still persist. This review discusses a detailed summary of existing research on the application of nanofluids in drilling, exploring their types, properties, and specific uses in areas such as fluid loss control, wellbore stability, and thermal management. It also reports the challenges and future potential of nanotechnology in drilling, including nanoparticle stability, environmental considerations, and cost concerns. By synthesizing current research and highlighting gaps for further study, this review intends to guide researchers and industry professionals in effectively integrating nanofluid usage to optimize drilling practices and support a more sustainable energy future.