Remediation of soil and groundwater contaminated with toxic metals has been a major environmental challenge for decades. Yet, cost-effective and sustainable in situ remediation technologies remain lacking. Over the last 15 years or so, an innovative in situ remediation strategy has shown promising by means of stabilized nanoparticles. Stabilized nanoparticles are prepared using novel stabilizers that facilitate the deliverability and transport of nanoparticles in the subsurface. This study reviews synthesis and characterization of some model stabilized nanoparticles, and their application for remediation of metals-contaminated soil and water. Fate and transport of these stabilized nanoparticles in groundwater and soil are also examined. Lastly, this review identifies the key knowledge gaps such as lack of field data pertaining to the long-term effectiveness of the immobilized metals and impacts of the delivered nanoparticles on the biogeochemical conditions in the subsurface. The information may facilitate further development of this promising remediation technology.