Induced pluripotent stem cells (iPSCs) have received much attention in recent times as a potential cell source for tissue engineering due to their self-renewal and multi-lineage differentiation potential. However, culture of iPSCs and controlling their fate and function is a great challenge during tissue engineering process. Recent advances in nanotechnology facilitate the development of nanomaterials with cell responsive characteristics. The nanomaterials offer a potential solution to better control the cellular fate and function of iPSCs in three-dimensional (3D) microenvironment/niche in order to engineer physiologically functional tissues and organs, which will have a potential to clinical translation. However, the culture of iPSCs in 3D microenvironment and underlying mechanism behind the cell-material interaction is limitedly known, which is very essential to realize the full potential of iPSCs in regenerative medicine. In this article, the authors therefore review the impact of nanomaterials in iPSCs culture and how the cells interact with such nanomaterials in the context of tissue engineering. © Copyright 2016 American Scientific Publishers All rights reserved.