Ever since gold was found, this element has fascinated human beings. It is stable in air, and is illuminating for several thousands years without changing its colors. Nanoparticles are the basic nanommaterials, and, particularly gold nanoparticles show unique properties which are not shown in bulk states. Scientists are trying to apply these new properties to catalysts, bioscience, optics, etc. Judging from the current research activities, one can envisage that gold nanoparticles can play a major role in opening a new era in diagnoses and treatment of diseases like cancers. However to apply the nanoparticles one must modify the surface of the nanoparticles in order to give the materials certain functionalities. It certainly is worth to review the current research status and challenges in the area of functional gold nanoparticles.