Nanopreparation technology has been increasingly applied to improve the properties of volatile oils in traditional Chinese medicine (TCM). Volatile oils, though with extensive pharmacological activities, face challenges such as poor water solubility, low bioavailability, and poor targeting. Nanoformulation technology can enhance the stability, solubility, release, and bioavailability of volatile oils, and reduce their volatility and toxicity. This review discusses the main classifications and latest developments of volatile oil nanoformulations, as well as the preparation methods of traditional Chinese medicine volatile oil nanoformulations. It also discusses the limitations of nano formulation technology and future challenges. The application of nanotechnology in TCM volatile oils can contribute to the modernization of volatile oils and broaden their application value. Volatile oil nano-carrier systems refer to nano-sized particles processed using nanocarrier technology to encapsulate the complete component or major active ingredients of volatile oils. These nanoparticles serve as carriers for volatile oils or active ingredients, forming a nano-delivery system. The use of nanocarriers can address issues such as low solubility of active ingredients and poor cellular absorption. Additionally, the drawbacks of volatile oil administration, such as limited delivery methods, low solubility, poor stability, short biological half-life, weak targeting, and susceptibility to metabolism and rapid elimination, can be overcome by utilizing diverse and customizable nanocarriers. Lipid-based nanodrug delivery systems, such as microemulsions (ME), nanoemulsions (NE), and liposomes (LS), have been widely studied for their ability to improve the solubility and stability of volatile oils. Solid lipid nanoparticles (SLN) and nanostructured lipid carriers (NLC) are also promising nanocarriers for volatile oils. Polymer-based nanodrug delivery systems, such as nanocapsules (NC), nanomicelles (PM), and nanogels (NG), have also been explored for their ability to enhance the stability and solubility of volatile oils. Various synthesis methods for nanodrug delivery systems have been developed, including spontaneous nanoemulsification (SNE), phase inversion (PI), high-speed shear (HSS), high-pressure homogenization (HPH), ultrasonic (US), thin film hydration (TFH), ethanol injection technique (EIT), nanoprecipitation (NPP), electrospray (ES), and emulsion diffusion method (EDM). These methods have been used to prepare various types of volatile oil nanoformulations, including microemulsions, nanoemulsions, liposomes, solid lipid nanoparticles, nanostructured lipid carriers, self-emulsifying drug delivery systems, nanocapsules, polymeric micelles, and nanogels. The application of nanocarrier technology in the field of volatile oils can provide new ideas and solutions for the stabilization, controlled release performance, and application expansion of volatile oils. It can also promote theNanopreparation technology has been increasingly applied to improve the properties of volatile oils in traditional Chinese medicine (TCM). Volatile oils, though with extensive pharmacological activities, face challenges such as poor water solubility, low bioavailability, and poor targeting. Nanoformulation technology can enhance the stability, solubility, release, and bioavailability of volatile oils, and reduce their volatility and toxicity. This review discusses the main classifications and latest developments of volatile oil nanoformulations, as well as the preparation methods of traditional Chinese medicine volatile oil nanoformulations. It also discusses the limitations of nano formulation technology and future challenges. The application of nanotechnology in TCM volatile oils can contribute to the modernization of volatile oils and broaden their application value. Volatile oil nano-carrier systems refer to nano-sized particles processed using nanocarrier technology to encapsulate the complete component or major active ingredients of volatile oils. These nanoparticles serve as carriers for volatile oils or active ingredients, forming a nano-delivery system. The use of nanocarriers can address issues such as low solubility of active ingredients and poor cellular absorption. Additionally, the drawbacks of volatile oil administration, such as limited delivery methods, low solubility, poor stability, short biological half-life, weak targeting, and susceptibility to metabolism and rapid elimination, can be overcome by utilizing diverse and customizable nanocarriers. Lipid-based nanodrug delivery systems, such as microemulsions (ME), nanoemulsions (NE), and liposomes (LS), have been widely studied for their ability to improve the solubility and stability of volatile oils. Solid lipid nanoparticles (SLN) and nanostructured lipid carriers (NLC) are also promising nanocarriers for volatile oils. Polymer-based nanodrug delivery systems, such as nanocapsules (NC), nanomicelles (PM), and nanogels (NG), have also been explored for their ability to enhance the stability and solubility of volatile oils. Various synthesis methods for nanodrug delivery systems have been developed, including spontaneous nanoemulsification (SNE), phase inversion (PI), high-speed shear (HSS), high-pressure homogenization (HPH), ultrasonic (US), thin film hydration (TFH), ethanol injection technique (EIT), nanoprecipitation (NPP), electrospray (ES), and emulsion diffusion method (EDM). These methods have been used to prepare various types of volatile oil nanoformulations, including microemulsions, nanoemulsions, liposomes, solid lipid nanoparticles, nanostructured lipid carriers, self-emulsifying drug delivery systems, nanocapsules, polymeric micelles, and nanogels. The application of nanocarrier technology in the field of volatile oils can provide new ideas and solutions for the stabilization, controlled release performance, and application expansion of volatile oils. It can also promote the