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The coronavirus (COVID-19) pandemic is one of the biggest challenges in the field of healthcare. Nanomedicine is a developing area that has the potential to treat various diseases and control infections. Now, its applications are open for the treatment of COVID-19. We have studied relevant papers through Scopus, Google Scholar, Science Direct and ResearchGate on nanomedicine in context of COVID-19. This paper provides detailed information about nanomedicine in the context of healthcare. It further identifies the primary challenges faced in the current situation. This study provides details about the advancements in the area of nanomedicine in healthcare for fighting the COVID-19 pandemic. Finally, we have identified and discussed various significant applications of nanomedicine in solving challenges thrown by the COVID-19 pandemic. Researchers can work on developing applications of nanoparticles with the size of the novel Coronavirus. Nanomedicine is helpful to repair the cells of an infected patient the help of repair proteins. It also plays a vital role in testing medicine and helps many clinical trials get approval from healthcare agencies. In the future, nanomedicine will be helpful for fighting against this pandemic and creating advancements in healthcare.