Nanoparticle drug delivery focuses on maximizing drug efficacy and minimizing cytotoxicity. Fine-tuning nanoparticle properties for effective drug delivery involves addressing the following factors. 
The surface-area-to-volume ratio of nanoparticles can be altered to allow for more ligand binding to the surface. Increasing ligand binding efficiency can decrease dosage and minimize nanoparticle toxicity. Minimizing dosage or dosage frequency also lowers the mass of nanoparticle per mass of drug, thus achieving greater efficiency.
Surface functionalization of nanoparticles is another important design aspect and is often accomplished by bioconjugation or passive adsorption of molecules onto the nanoparticle surface. By functionalizing nanoparticle surfaces with ligands that enhance drug binding, suppress immune response, or provide targeting/controlled release capabilities, both a greater efficacy and lower toxicity are achieved. Efficacy is increased as more drug is delivered to the target site, and toxic side effects are lowered by minimizing the total level of drug in the body.
The composition of the nanoparticle can be chosen according to the target environment or desired effect. For example, liposome-based nanoparticles can be biologically degraded after delivery, thus minimizing the risk of accumulation and toxicity after the therapeutic cargo has been released.
Metal nanoparticles, such as gold nanoparticles, have optical qualities(also described in nanomaterials) that allow for less invasive imaging techniques. Furthermore, the photothermal response of nanoparticles to optical stimulation can be directly utilized for tumor therapy.