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Skin cancer remains one of the most significant global health issues due to its high prevalence and wide range of clinical outcomes. The management of skin cancer has changed as a result of recent developments in theranostics and nanotheranostics, which combine therapeutic and diagnostic modalities into single platforms to enable precision medicine and customized treatment. Current developments in molecular biomarkers, diagnostic technologies, epidemiology, and therapeutic approaches-such as immunotherapy and nanocarrier-based methods-are summarized in this review. Multimodal imaging, AI-powered diagnostic models, targeted molecular medicines, and risk assessment tools are some of the major advancements that have improved early identification, individualized care, and monitoring. Obstacles include tumor heterogeneity, safety issues, and regulatory restrictions that prevent widespread clinical translation still exist despite the success of preclinical and a few clinical uses. To further improve the efficacy of skin cancer diagnosis and treatment, future directions suggest the use of multiomics, consumer-driven digital health technologies, sophisticated nanomaterials, and AI-powered customisation. If remaining scientific and practical concerns are resolved, theranostics and nanotheranostics present intriguing opportunities for attaining high degrees of personalization, efficacy, and safety in the treatment of skin cancer.