Tazarotene, a potent retinoid, is commonly used for treating acne, psoriasis, and signs of aging. However, challenges such as poor skin penetration, irritation, and instability limit its effectiveness. Nanogels—self-assembling, stimuli-responsive delivery platforms—emerge as a revolutionary solution in overcoming these challenges. By responding to external stimuli, nanogels provide precise, controlled, and sustained release of Tazarotene directly at the target site, improving its therapeutic potential. This review investigates recent advancements in nanotechnology for enhancing Tazarotene delivery. The role of AI-driven drug design is explored, where computational simulations aid in optimizing nanogel carriers for maximum drug loading, controlled release, and targeted delivery. Further, we examine multi-functional nanogels capable of responding to diverse environmental triggers such as pH, temperature, and light, enabling dynamic drug release. The integration of digital health technologies, including wearable biosensors for real-time monitoring, is also discussed to personalize and adjust treatment according to individual patient needs. Tazarotene-loaded nanogels significantly enhance bioavailability, dermal penetration, and sustained release compared to traditional formulations. These systems minimize irritation, improve stability, and increase drug efficacy by ensuring deeper skin penetration. The combination of smart polymers and AI-assisted optimization ensures precision in drug delivery, promoting effective, personalized treatment regimens for dermatological conditions. Nanogels for Tazarotene delivery represent the next generation of precision dermatology, merging AI, smart polymers, and personalized medicine to offer a patient-centric, adaptive, and effective solution for skin disorders. This approach marks a significant step toward individualized, future-proofed dermatological therapies.