This document discusses how nanoparticles can be used for targeted drug delivery in cancer and inflammation. Nanoparticles less than 100nm in size can be engineered from biodegradable materials to efficiently carry drugs and be taken up by targeted cells. They allow for higher doses of drugs to be delivered directly to diseased cells over prolonged periods of time, reducing side effects. Examples discussed include using nanoparticles to target cancer cells, tumor angiogenesis, infected macrophages, and inflammatory molecules. The future potential of nanotechnology for improved targeted drug delivery is promising.