Lung cancer (LC) is one of the leading causes of cancer-related mortality globally, and despite numerous available treatment modalities, the 5-year survival rate for LC patients remains approximately 20%. A large proportion of LC patients are diagnosed at advanced stages, and conventional treatments frequently exhibit poor efficacy and are often associated with numerous side effects. Therefore, there is an urgent need for innovative therapeutic strategies to meet the needs of LC patients. Recent advances in nanotechnology have opened new avenues for the diagnosis and treatment of LC, particularly through the use of nanoparticles (NPs) as a drug delivery system, which offer enhanced therapeutic potential. Due to their unique physicochemical properties, NPs are widely employed in LC drug delivery systems. They can efficiently load pharmaceuticals and specifically target cancer cells to enhance diagnostics and treatment. Additionally, NPs can encapsulate multiple therapeutic agents, including targeted molecules and photosensitive reagents. Despite the substantial promise of nanotechnology in LC treatment, several challenges remain in its clinical application. This review represents a comprehensive overview of LC, encompassing risk factors, types, stages, mechanisms, and traditional treatment strategies. Furthermore, we thoroughly emphasized the current nanotechnology-based diagnostics and therapies for LC. In summary, the ongoing advancement of drug delivery systems highlights the potential of nanotechnology to enhance traditional LC treatments and facilitate the development of new therapeutic strategies. Future research will focus on optimizing the unique properties of various NPs to enhance treatment outcomes and offer personalized therapeutic strategies, ultimately improving the prognosis and quality of life for LC patients.