Carotenoids, as promising functional components in human diet, are gaining immense importance todays. Apart from their pivotal importance in photosynthetic organisms or as natural pigments, they are typically referred to as health-promotional ingredients, which offer several beneficial attributes. However, their sensitivity against environmental and process stresses, low-water solubility, as well as low-bioavailability are the most shortfalls restricting pharmaceutical/food carotenoid applications. In this regard, lipid-based nano-delivery cargos i.e. nano-liposomal vehicles, surfactant-based nano-carriers, nano-emulsions, nano-structured lipid carriers (NLCs), and solid lipid nano-particles (SLNs), as safe and attractive nanocarriers, are proving to be a potent platform for protection of carotenoids against challenging conditions along with offering an efficient controlled release. Nonetheless, the development of such delivery systems needs comprehensive understanding of physicochemical attributes of carotenoids and their specialized carriers, effective variables, delivery mechanisms, specific shortfalls of each delivery system, as well as recent nano-encapsulation advancements. To address these issues, the present review is attempting to cover the novel advances in nanoencapsulation of carotenoids principally based on lipid-based nanocarriers with an emphasis on the factors affecting the bioaccessibility of carotenoids in such nanocarriers, together with their challenges and upcoming evolutions.