The incorporation of smart nanomaterials into manufacturing systems offers a viable route towards improved sustainability and circularity in industrial production. This chapter describes the conceptual and practical foundations of sustainable circular manufacturing from the nanotechnology perspective, with special focus on the contribution of smart nanomaterials designed to dynamically adapt to environmental stimuli, allowing for improved functionality in resource-effective systems. The chapter starts by explaining the system-level necessity for circular manufacturing and the particular role of nanotechnology in facilitating this paradigm shift. The chapter goes on to explain the definitions, types, and functional properties of smart nanomaterials that make them enable circular processes and outlines the benefits of such materials compared to traditional materials in adaptability, selectivity, and life cycle performance. Subsequent sections discuss nano-improved methods towards resource retrieval in the form of bioinspired nanomaterials for targeted harvesting, nanozymes for plastic recycling by depolymerization, and quantum dots for effective sorting of waste. In parallel, the chapter examines the digitalization of nanomanufacturing in the form of blockchain for tracing materials and data-driven decision systems, the latter being central to facilitating circular feedback loops. The chapter aligns these innovations with Sustainable Development Goals (SDGs), specifically SDG 9 and SDG 12.