Carbon nanotubes are cylindrical carbon molecules have novel properties, making them potentially useful in many applications in nanotechnology, electronics, optics, and other fields of material science as well as potential uses in architectural fields. They have unique electronic, mechanical, optical and chemical properties that make them good candidates for a wide variety of applications, including drug transporters, new therapeutics, delivery systems and diagnostics. Their unique surface area, stiffness, strength and resilience have led to much excitement in the field of pharmacy. Nanotubes are categorized as single-walled nanotubes, multiple walled nanotubes. Various techniques have been developed to produce nanotubes in sizeable quantities, including arc discharge, laser ablation, chemical vapor deposition. They can pass through membranes, carrying therapeutic drugs, vaccines and nucleic acids deep into the cell to targets previously unreachable. Purification of the tubes can be divided into a couple of main techniques: oxidation, acid treatment, annealing, sonication, filtering and functionalization techniques. The main problem of insolubility in aqueous media has been solved by developing a synthetic protocol that allows highly water-soluble carbon NTs to be obtained. The modifications are done to improve efficiency of carbon nanotubes by formulating luminescent carbon nanotubes, ultrathin carbon nanoneedles, magnetically guided nanotubes. The application of carbon nanotube in tissue engineering, drug carrier release system, wound healing, in cancer treatment and as biosensor. Researchers have recently developed a new approach to Boron Neutron Capture Therapy in the treatment of cancer using substituted Carborane-Appended Water-Soluble single-wall carbon nanotubes.