Pediatric central nervous system (CNS) tumors rank second among the fatal childhood malignancies, primarily due to the significant challenge posed by the blood-brain barrier (BBB), which limits the therapeutic delivery and contributes to poor clinical outcomes. This challenge is exacerbated by the distinct developmental traits of pediatric BBB, the immunosuppressive tumor microenvironment (TME), and the inherent diversity of different tumor types such as medulloblastoma and diffuse intrinsic pontine glioma (DIPG). Recent advances at the crossroad of immunotherapy and nanomedicine are paving the way for transformative strategies to penetrate the BBB and modify the immunogenic landscape within pediatric CNS tumors. Various nanoparticle-based approaches such as liposomes and polymeric nanoparticles to exosomes have been engineered with surface ligands like transferrin and lactoferrin to improve the BBB targeting in pediatric CNS tumors. Moreover, stimuli-responsive nanocarriers, such as pH- and enzyme-sensitive paradigms, are being implemented to enhance controlled drug release in the acidic and protease-rich TME. Additional, synergistic therapies that combine chemotherapeutics, immune checkpoint inhibitors, oncolytic viruses, and cancer vaccines are being adapted for pediatric patients, with enhanced drug delivery aided by nanocarrier formulations have led to significant tumor regression and prolonged survival in animal models. Additionally, tailored treatments utilizing genetic and pharmacokinetic biomarkers, along with innovative BBB-on-chip platforms, enable precise targeting and real-time monitoring of drug permeability across the barrier. In this review, we have emphasized that how a deeper understanding of pediatric BBB biology, targeted modulation of the barrier, and innovative nanotechnology-immunotherapy combinations is providing newer treatment modalities and less toxic therapies for children with CNS tumors.