In the last two decades, metal matrix nanocomposites have witnessed tremendous growth. Particulate-reinforced nanocomposites have been extensively employed in the automotive industry for their capability to withstand high temperature and pressure conditions. Several manufacturing approaches have been used to fabricate them. Non-homogeneous particle dispersion and poor interface bonding are the main drawbacks of conventional manufacturing techniques. A critical review of nanocomposite manufacturing processes is presented; the distinction between ex-situ and in-situ processes is discussed in some detail. Moreover, in-situ gas/liquid processes are elaborated and their advantages are discussed. The thermodynamics and kinetics of the reaction between the precursor gas and the liquid metal have been analyzed and their role on particle formation studied. This critical review will provide the reader with an overview of nanocomposite manufacturing methods along with a clear understanding of advantages and disadvantages.