The article reviews the progress of nanopreparation technology in improving the application of volatile oils from traditional Chinese medicine (TCM). Volatile oils, known for their extensive pharmacological activities, face challenges such as poor water solubility, low bioavailability, and volatility. Nanopreparation technology, including various nanoformulation methods like microemulsions, nanoemulsions, liposomes, and solid lipid nanoparticles, can enhance the stability, solubility, and bioavailability of volatile oils. The article discusses the limitations of volatile oils, the latest developments in nanoformulations, and the preparation methods of TCM volatile oil nanoformulations. It also addresses the limitations of nanoformulation technology and future challenges. The use of nanotechnology in TCM volatile oils can contribute to their modernization and broader application in industries such as agriculture, food, and healthcare. The article highlights the importance of understanding the role of nanotechnology in improving the physicochemical properties of volatile oils, enhancing their stability, solubility, and bioavailability, and reducing their volatility and toxicity.The article reviews the progress of nanopreparation technology in improving the application of volatile oils from traditional Chinese medicine (TCM). Volatile oils, known for their extensive pharmacological activities, face challenges such as poor water solubility, low bioavailability, and volatility. Nanopreparation technology, including various nanoformulation methods like microemulsions, nanoemulsions, liposomes, and solid lipid nanoparticles, can enhance the stability, solubility, and bioavailability of volatile oils. The article discusses the limitations of volatile oils, the latest developments in nanoformulations, and the preparation methods of TCM volatile oil nanoformulations. It also addresses the limitations of nanoformulation technology and future challenges. The use of nanotechnology in TCM volatile oils can contribute to their modernization and broader application in industries such as agriculture, food, and healthcare. The article highlights the importance of understanding the role of nanotechnology in improving the physicochemical properties of volatile oils, enhancing their stability, solubility, and bioavailability, and reducing their volatility and toxicity.