With the constant development of science and technology, the application of nanotechnology has gradually been expanded to a variety of fields. In fundamental research of emerging industries, the application of nanotechnology has become an important efficient, multi‐functional and eco‐friendly practice, which had played a positive role in promoting industrial development. The purpose of this study is to address the application and prospect of nanotechnology. In this study, literature review and case analysis are used to probe in the application and prospect of nanotechnology. The basic theory and application fields of nanotechnology, as well as its application in experiments are analyzed through literature review. By studying the application and prospect of nanotechnology, we can identify its development potential and wide application prospect in various fields. In the future, nanotechnology is expected to bring more benefits and development opportunities to mankind. On the other hand, we should also pay attention to the potential risks of nanotechnology to mankind and the environment, take effective measures to lower its negative impact and facilitate the healthy development of nanotechnology.