This review discusses the development and challenges of inhalable nano-formulations for treating lung diseases. Nano-formulations, characterized by their nanoscale particles, offer advantages such as precise pulmonary drug delivery, improved aerosol lung deposition rates, and increased drug bioavailability. However, the industrialization of these formulations has been limited, with only one product, ARIKAYCE®, approved by the FDA. The review categorizes various inhalable nano-formulations, highlights their benefits over conventional formulations, and examines the adaptability of different inhalation devices. It concludes that vibrating mesh nebulizers are the most suitable for delivering inhalable nano-formulations due to their efficient drug delivery, low API residue, and reduced patient compliance issues. The review also discusses the safety and stability concerns of nanomaterials and the need for further technological improvements to enhance the effectiveness and safety of inhalable nano-formulations.This review discusses the development and challenges of inhalable nano-formulations for treating lung diseases. Nano-formulations, characterized by their nanoscale particles, offer advantages such as precise pulmonary drug delivery, improved aerosol lung deposition rates, and increased drug bioavailability. However, the industrialization of these formulations has been limited, with only one product, ARIKAYCE®, approved by the FDA. The review categorizes various inhalable nano-formulations, highlights their benefits over conventional formulations, and examines the adaptability of different inhalation devices. It concludes that vibrating mesh nebulizers are the most suitable for delivering inhalable nano-formulations due to their efficient drug delivery, low API residue, and reduced patient compliance issues. The review also discusses the safety and stability concerns of nanomaterials and the need for further technological improvements to enhance the effectiveness and safety of inhalable nano-formulations.