The application of nanotechnology to health has been one of the revolutionizing factors in the field of trauma and orthopaedic surgery over the last decade. Advances in nanomedicine, in comparison to conventional modes of treatment, have influenced immensely the approach towards trauma and orthopaedic surgery and provided some unique answers to some very complex problems like bone reconstruction, soft tissue repair, and prevention of infection. The current narrative review intends to underpin an extensive analysis of modern applications and recent advances in nanotechnology-driven therapies in orthopaedics. Having leveraged unique properties inherent in nanoparticles and nanoscale materials, novel interventions, such as nanostructured scaffolds, drug delivery systems, and bioactive coatings, have flourished into a variety of promising means to enhance osseointegration, accelerate the healing process, and reduce postoperative complications. This review at once acknowledges the huge potential of these technologies and some of the problems impeding their wide-range clinical application, including long-term safety, main regulatory hurdles, and scale-up issues. The following review aims to give orthopaedic surgeons, researchers, and biomedical engineers an overview of the present status and perspectives for the future regarding nanomedicine in trauma and orthopaedic surgery, pointing out the expectations of a much-improved outcome in patients and overall quality of life.