Introduction: Sepsis is a global health emergency marked by a dysregulated host response to infection, leading to life-threatening organ dysfunction. Timely diagnosis and effective treatment are critical but remain challenging due to the limitations of conventional diagnostics, such as blood cultures and standard biomarkers (CRP, PCT), which often lack sensitivity, specificity, and rapid turnaround. Objective/Aim: To systematically review recent advancements in nanotechnology-based diagnostics and therapeutics for the improved management of sepsis. Methods: A comprehensive analysis of peer-reviewed literature was conducted, focusing on the application of various nanomaterials and nanotechnologies in sepsis diagnostics and therapy. Key technologies included magnetic nanoparticles, gold nanoparticles, quantum dots, carbon nanotubes, and hybrid nanoplatforms. Results: Nanomaterials have demonstrated high potential in enhancing sepsis diagnostics through ultra-sensitive, specific, and real-time biosensing of host and microbial biomarkers. These platforms support multiplexed and point-of-care detection. In therapeutics, nanoparticle-based drug delivery systems and biomimetic carriers have improved targeted delivery, pharmacokinetics, and immune modulation. These innovations are particularly significant in the context of rising antimicrobial resistance. Conclusion: Nanotechnology offers transformative potential in sepsis care by enabling early diagnosis and personalized treatment. However, challenges related to regulatory approval, safety, scalability, and clinical translation must be addressed. Integrating these technologies into standard care pathways could significantly improve outcomes in diverse healthcare settings.