Nanotechnology and nano science are new frontiers of this century and Food nanotechnology is an area of emerging interest and opens up a whole universe of new possibilities for the food industry. In food engineering, two major applications related to nanotechnology (i.e) food Nano sensing and food nano structured ingredients are being expected. In the former field, better food quality and safety evaluation can be achieved by using nanotechnology. Food packages embedded with nanoparticles can alert the consumer about the safety of product. It can release preservatives to extend shelf life of food in package. Currently, food packaging and monitoring are a major focus of food industry related nanotechnology research. It is hoped that nanotechnology has a great potential in food industries as it may be used to manufacture about 25% of all food packaging in near future. It remains unclear whether nanoparticles used in food packaging may migrate or leach into the food. The potential impact of nanoparticles on consumer’s health should be well studied. Emphasis is given to assess the safety of ingredients in nanoparticles before their use in food products including packaging. Recently “Nanotechnology”, is essentially a modern scientific field that is constantly evolving as a broad area of research, with respect to dairy and food processing, preservation, packaging and development of functional foods. Food and dairy manufacturers, agricultural producers and consumers could gain a more competitive position through nanotechnology.