Dry eye disease (DED) is a common ocular condition affecting 5%–50% of the global population, characterized by tear film instability, hyperosmolarity, and ocular surface inflammation. Conventional treatments, such as artificial tears and corticosteroids, have limitations in bioavailability, frequency of administration, and side effects. Nanomedicine offers promising solutions by improving drug delivery efficiency and targeting specific ocular tissues. Various nanocarriers, including dendrimers, nanoemulsions, micelles, liposomes, and inorganic nanoparticles, have been developed to enhance the treatment of DED. These nanomedicines improve drug retention, reduce side effects, and increase bioavailability, making them more effective than traditional therapies. For example, Restasis® and Cequa® are FDA-approved nanomedicines for DED treatment. Additionally, silica and gold nanoparticles have shown potential in reducing inflammation and oxidative stress associated with DED. Despite these advancements, challenges remain in the clinical translation and commercialization of nanomedicine for DED. Further research is needed to optimize nanocarriers for better biocompatibility, drug release, and pharmacokinetics. Overall, nanomedicine holds significant promise for improving the treatment of DED and enhancing patient outcomes.Dry eye disease (DED) is a common ocular condition affecting 5%–50% of the global population, characterized by tear film instability, hyperosmolarity, and ocular surface inflammation. Conventional treatments, such as artificial tears and corticosteroids, have limitations in bioavailability, frequency of administration, and side effects. Nanomedicine offers promising solutions by improving drug delivery efficiency and targeting specific ocular tissues. Various nanocarriers, including dendrimers, nanoemulsions, micelles, liposomes, and inorganic nanoparticles, have been developed to enhance the treatment of DED. These nanomedicines improve drug retention, reduce side effects, and increase bioavailability, making them more effective than traditional therapies. For example, Restasis® and Cequa® are FDA-approved nanomedicines for DED treatment. Additionally, silica and gold nanoparticles have shown potential in reducing inflammation and oxidative stress associated with DED. Despite these advancements, challenges remain in the clinical translation and commercialization of nanomedicine for DED. Further research is needed to optimize nanocarriers for better biocompatibility, drug release, and pharmacokinetics. Overall, nanomedicine holds significant promise for improving the treatment of DED and enhancing patient outcomes.