Nanocomposites are high performance materials which reveal rare properties. Nanocomposites have an estimated annual growth rate of 25% and fastest demand to be in engineering plastics and elastomers. Their prospective is so prominent that they are valuable in numerous areas ranging from packaging to biomedical applications. In this review the various types of matrix nanocomposites are discussed highlighting the need for these materials, their processing approaches and some recent results on structure, properties and potential applications. Perspectives including need for such future materials and other interesting applications. Being environmentally friendly, applications of nanocomposites propose new technology and business opportunities for several sectors of the aerospace, automotive, electronics and biotechnology industries.