This project work gives a panoramic view of the past activities, present development and future directionsrnwith multi-facets application possibilities of nanophotonics. Nanophotonics is a new paradigm ofrnnanoscience for 21st century, which deals with optical processes at the much smaller length scale than thernwavelength of optical radiation. The nanoscale matter-radiation interaction includes nanoscalernconfinement of radiation, nanoscale confinement of matter, and nanoscale photo-physical orrnphotochemical transformation, offer numerous opportunities for both fundamental research andrntechnological applications. Two main broad areas of Nanophotonics are Surface Plasmonics and PhotonicrnCrystal. Surface Plasmonics are collective charge oscillations that occur at the interface betweenrnconductors and dielectrics. Plasmonic devices have already shown to be excellent candidates for a numberrnof different optical applications. Photonic Crystals are artificial periodic structures whose dielectricrnconstant is periodically modulated in the order of light wave length, which can create arrange ofrnforbidden frequencies called a Photonic band gap (PBG). In Photonic Crystal structures, the bandrnstructures ideas of solid state physics are applied to electromagnetic wave. Here we present mainly thernphysics of nanophotonics, challenges in fabrications and many applications. This paper concludes with thernfuture of nanophotonics, seems bright and close to reality. This field is expected to revolutionize manyrnaspects of modern life. We start with a brief introduction and then elaborate the physics behind it. Thernapplication areas are, however, wide spread and in every field of Science and Technology