Nanomaterials have shown significant promise for enhancing the performance of composite materials and increasing their functionality for various industrial applications. This review explores the unique properties of nanomaterials, particularly carbon-based nanomaterials, and provides key findings in utilizing them to enhance composite performance. It highlights specific nano-based composite materials and their significant potential in advancing the field of nanocomposites. Challenges associated with nanocomposite production and utilization are also discussed, along with possible solutions to address them. Finally, the study provides recommendations for continued research and innovation in nanocomposites to fully unlock the benefits of these advanced materials for broader future applications.