Malignant brain tumors remain to be highly fatal illnesses with a bleak outlook, as the average survival rate for patients after receiving medical treatment is less than two years. The major obstacles that impede the effectiveness of drugs in treating brain tumors are the difficulties in transporting drugs across the blood–brain barrier, achieving optimal drug distribution within the tumor, and minimizing the destruction of healthy cells in addition to tumor cells due to non-targeted drug delivery. Recently, nanotechnology has gained significant attention in treating brain tumors by overcoming the aforementioned hurdles. Nanoparticles have emerged as a promising approach for the treatment of brain tumors due to their ability to cross the blood–brain barrier, target tumor cells with high specificity, and deliver therapeutic agents directly to the tumor site. The present review discusses the importance of nanoparticles in brain tumor therapy by overcoming the drawbacks of conventional delivery systems. Furthermore, it meticulously explores recent advances in various types of nanoparticles for the treatment of brain tumors, followed by detailed descriptions of their pre-clinical and clinical studies and patents. Nevertheless, it also elaborates on the role of active targeting in brain tumor therapy. Overall, this review emphasizes the potential of nanoparticles as a promising approach for brain tumor treatment and provides a framework for future research in this field.