Colloidally synthesized luminescent nanocrystals (NCs) have attracted tremendous attention due to their unique nanoscale optical and electronic properties. The emission properties of these NCs can be precisely tuned by controlling their size, shape, and composition as well as by introducing appropriate dopant impurities. Nowadays, these NCs are actively utilized for various applications such as optoelectronic devices including light emitting diodes (LEDs), lasers, and solar cells, and bio-medical applications such as imaging agents and bio-sensors. In this review, we classify luminescent nanomaterials into quantum dots (QDs), upconversion nanoparticles (UCNPs), and perovskite NCs and present their intrinsic emission mechanism. Furthermore, the recently emerging issues of efficiency, toxicity, and durability in these materials are discussed for better understanding of industry demands. As well, the future outlook will be offered for researchers to guide the direction of future research.