Diabetes is a global health challenge, and while current treatments offer relief, they often fall short in achieving optimal control and long-term outcomes. Nanotechnology offers a groundbreaking approach to diabetes management by leveraging materials at the nanoscale to improve drug delivery, glucose monitoring, and therapeutic precision. Early advancements focused on enhancing insulin delivery through smart nanosystems such as tiny capsules that gradually release insulin, helping prevent dangerous drops in blood sugar. Simultaneously, the development of nanosensors has revolutionised glucose monitoring, offering real-time, continuous data that empowers individuals to manage their condition more effectively. Beyond insulin delivery and monitoring, nanotechnology enables targeted drug delivery systems that allow therapeutic agents to reach specific tissues, boosting efficacy while minimising side effects. Tools like microneedles, carbon nanomaterials, and quantum dots have made treatment less invasive and more patient-friendly. The integration of artificial intelligence (AI) with nanotechnology marks a new frontier in personalised care. AI algorithms can analyse individual patient data to adjust insulin doses and predict glucose fluctuations, paving the way for more responsive, customised treatment plans. As these technologies advance, safety remains a key concern. Rigorous research is underway to ensure the biocompatibility and long-term safety of these novel materials. The future of diabetes care lies in the convergence of nanotechnology and AI, offering personalised, data-driven strategies that address the limitations of conventional approaches. This review explores current progress, persistent challenges, and the transformative potential of nanotechnology in reshaping diabetes diagnosis and treatment and improving patient quality of life.