Nanotechnology has intrigued a large number of researchers the world over owing to its unique properties as compared to bulk materials, and the novelty of applications made possible across many fields of science. Researchers, taking advantage of the unique properties of particles in nano (1-100 nm) form, have been developing nanoformulations of various medicinal compounds to enhance drug solubility, dissolution, and bioavailability. There are various methods by which drug compounds are conjugated to nanoparticles, and some bioactive compounds are attached by intermediary agents which are themselves usually part of the formation reaction of nanoparticles. Nanoformulations have been developed involving a range of medicinal compounds of biological and syntheticorigin intended to enhance the compound's pharmacokinetic and pharmacological profiles, or to capitalize on unique properties of nanoparticles for therapeutic or diagnostic purposes. A number of nanodrugs exist on the market today, and many more are in the clinical or pre-clinical pipeline. There are a number of challenges commonly encountered when designing nanodrug formulations as well as challenges to the long term viability of nanodrug formulation strategies, especially in regards to environmental and safety concerns. Some researchers have harnessed the structural and functional relationship of various medicinal compounds to enhance the design of nanoformulations. Other researchers have used structure-activity relationships as a means of enhancing safety and efficacy testing through in silico modeling. This article will touch on each of the above issues within the context of the impact each facet of nanotechnology has on medicinal chemistry.