The nervous system is the most intricate and indispensable system responsible for regulating sensory input, processing information, and regulating motor responses throughout the human body. Disorders of the nervous system, also known as neurological disorders, comprise ailments that round up the intricate realms of the brain, spinal cord, and intricate network of nerve cells. These include diseases and disorders like cerebral ischemia, stroke, traumatic brain injury, Parkinson’s disease, Alzheimer’s disease, and many others. Various hurdles confront the effective management of these conditions including a deep understanding of the underlying pathways and effective techniques for efficient drug delivery in the cerebral tissue. The blood-brain barrier (BBB) remains a major hurdle in cerebral drug delivery. Functional biomaterials can overcome this problem, as they can be piloted to specific locations, facilitating the transportation of functional agents to pass the BBB and reach the disease location with high precision. These materials can be electroactive, magnetic, or photoactive and can be controlled to precisely deliver drugs to the site of neuronal damage. Though synthesizing such materials can be challenging, the resultant biomaterials are neuro-compatible and have proved to be quite effective in ameliorating neurodegenerative disorders in controlled preclinical studies. Hence, it is necessary to understand the functional biomaterials and their applications in combating neurological disorders, as they might pave the way for designing future neurotherapeutic strategies.