Chemically enhanced oil recovery methods are utilized to increase the oil recovery by improving the mobility ratio, altering the wettability, and/or lowering the interfacial tension between water and oil. Surfactants and polymers have been used for this purpose for the last few decades. Recently, nanoparticles have attracted the attention due to their unique properties. A large number of nanoparticles have been investigated for enhanced oil recovery applications either alone or in combination with surfactants and/or polymers. This review discusses the various types of nanoparticles that have been utilized in enhanced oil recovery. The review highlights the impact of nanoparticles on wettability alteration, interfacial tension, and rheology. The review also covers the factors affecting the oil recovery using nanoparticles and current challenges in field implementation.