Alzheimer's disease (AD) is one of the most common forms of dementia, affecting more than 50 million people globally. The onset of AD is linked to age, smoking, obesity, hypercholesterolemia, physical inactivity, depression, gender, and genetics of an individual. The accumulation of Aβ peptides and neurofibrillary tangles (NFTs) in the brain is one of the critical factors that lead to AD, which is known to disrupt neuronal signaling and causing neurodegeneration. As per the current understanding, inhibiting the accumulation of Aβ peptides and NFTs is crucial in the management/treatment of AD. Latest research studies show that nanoparticles have the potency of improving drug transport across the blood–brain barrier easily. Specifically, graphene quantum dots (GQDs), a type of semiconducting nanoparticles, have been established as effective inhibitors for blocking the aggregation of Aβ peptides. The small size of GQDs allows them to pass through the blood– brain barrier with ease. Moreover, GQDs have fluorescence properties, which can be used to detect the concentration of Aβ in vivo. In recent years, compared to other carbon materials, the low cytotoxicity and high biocompatibility of GQDs, give them an advantage in the suitability and clinical research for AD. In this manuscript, we have discussed the role of different types of nanoparticles in the transportation of encapsulated or co-assembled compound drugs for the treatment of AD and importantly, the role of GQDs in the diagnosis and management/treatment of AD.