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Functional nanoparticles (NPs) hold immense promise in diverse fields due to their unique biological, chemical, and physical properties associated with size or morphology. Microfluidic technologies featuring precise fluid manipulation have become versatile toolkits for manufacturing NPs in a highly controlled manner with low batch-to-batch variability. In this review, we present the fundamentals of microfluidic fabrication strategies, including mixing-, droplet-, and multiple field-based microfluidic methods. We highlight the formation of functional NPs using these microfluidic reactors, with an emphasis on lipid NPs, polymer NPs, lipid-polymer hybrid NPs, supramolecular NPs, metal and metal-oxide NPs, metal–organic framework NPs, covalent organic framework NPs, quantum dots, perovskite nanocrystals, biomimetic NPs, etc. we discuss future directions in microfluidic fabrication for accelerated development of functional NPs, such as device parallelization for large-scale NP production, highly efficient optimization of NP formulations, and AI-guided design of multi-step microfluidic reactors. [ABSTRACT FROM AUTHOR]