Design and synthesis of well-ordered drug delivery systems are very important for medicinal and pharmaceutical and health care. Innovations of materials through nanotechnology and hydrogels have synergistically energized the growth of drug delivery. Uniqueness in material chemistry permits the creation of environmentally approachable, biocompatible, biodegradable and targeted drug delivery system. Large numbers of biopolymers have been examined for the design of drug delivery systems. Structure, size, shape and multi-functionality of drug delivery system can be controlled by the nanotechnology combined with biopolymer. Hydrogels have also been investigated as smart delivery systems capable to release, at the appropriate time and site of action, entrapped drugs in response to specific physiological triggers. This review mainly focuses on drug delivery applications of nanoparticles modified biopolymers and effective drug delivery system of biopolymer network based on hydrogels.