Atopic dermatitis (AD) is a common itching disorder that begins in infancy and may occur in persons with a family history of atopic disease. The disease is characterized by several changes in the epidermal layer with elevated serum immunoglobulin E (IgE) antibodies and histamine. Until now, there is no evident treatment for AD disease; however, topical therapy including topical corticosteroids has been used in both children and adults. Although the preferable route is the topical route, the low penetration across the stratum corneum (SC) layer is the great challenge for researchers and scientists. Nowadays the available drugs have severe side effects and low skin availability. Nanocarriers including liposomes, nanoparticles, nano-mixtures, nanogels, nano-emulsions and others, offer a good solution to these problems. Nanocarriers enable treatment of different forms of dermatitis, enhance drug bioavailability at the site of inflammation, reduce the side effects and increase the safety profiles. Nanoparticulate systems can possibly enhance topical medication delivery because of their ability to upgrade the drug loading, dissolution, and protect the unstable drug from degradation. This review offers an overview of AD types, different management modalities, systemic versus topical treatment, in addition to different types of lipid based nanocarriers that have been investigated for the management of AD.