β-Cyclodextrin-based nanosponges (β-CDNSs) play an important role in new arrays of agriculture, floriculture, cosmetics, medicine, high molecular weight proteins, novel flame retardants, gas carriers and water filters. In recent years, the field of advance nanostructured systems witnesses a rapid development due to miniaturization, dose-reduction, sustained and controlled release of actives and long-term stability of material. β-CDNSs are colloidal and cross-linked nanocarrier comprising of solid mesh-like structure with nano-cavities for encapsulation of complex lipophilic and hydrophilic chemical substances. The release of enthalpy-rich water molecules from the polymeric structures accounts for high complexation efficiency with different molecular substrates. This review primarily focuses on the important characteristics of β-CDNS, methods of preparation, release kinetics of chemical entity, potential applications and commercial products. The advantages of β-CDNS involve sustained and controlled release of entrapped molecules with high efficiency and excellent stability. Thus, nanosponges are effective carrier for the delivery of actives and developed as a commercial drug delivery system in pharmaceutical industries after certified clinical studies. In the near future, β-CDNS-based product will capture the market due to its diverse applications in anti-cancer, antiviral, antiplatelet, antihypertensive therapy, etc.