In this paper, we review the recent progress in nanofabrication by thermal plasmas, and attempt to define some of the most important issues in the field. For synthesis of nanoparticles, the experimental studies in the past five years are briefly introduced; the theoretical and numerical modelling works of the past 20 years are reviewed with some detailed explanations. Also, the use of thermal plasmas to produce nanostructured films and coatings is described. A wide range of technologies have been developed, ranging from chemical vapour deposition processes to new plasma spraying processes. We present an overview of the different techniques and the important physical phenomena, as well as the requirements for future progress.