Poor solubility of drug compounds is a great issue in drug industry today and decreasing particle size is one efficient and simple way to overcome this challenge. Drug nanocrystals are solid nanosized drug particles, which are covered by a stabilizer layer. In nanoscale many physical properties, like compound solubility, are different from the solubility of bulk material, and due to this drug nanocrystals can reach supersaturation as compared to thermodynamic solubility. The most important effect of the smaller particle size is that dissolution rate is highly enhanced mainly due to the increased surface area. In this review the most important properties of nanocrystalline drug compounds are presented, with multiple examples of the development and characterization of nanocrystalline drug formulations.