Nanocomposites are a class of materials in which one or more phases with nanoscale dimensions are embedded in a metal, ceramic, or polymer matrix. The properties of nanocomposites depend on matrix, loading, degree of dispersion, size, shape, and orientation of the nanoscale phase and interaction between the matrix and the nanoscale phase. Nanocomposites are generally prepared using direct melt intercalation. The formation of nanocomposite is ascertained by XRD pattern, FTIR spectra, electron microscopy, and thermal analysis like DSC and TGA. Nanocomposites have properties of nanoparticles, multifunctional capabilities, chemical functionalization, huge interphase zone. Novel nanomaterials offer a new chemotherapeutic route for cancer treatment by combining cell imaging and hyperthermia in a synergistic way. In spite of toxicity and safety concerns, multifunctional nanocomposite still interest the researchers because of emergence of versatile properties, better understanding of disease biomarkers, and quest for ways to improve biocompatibility.