This Digest presents new studies in the fast growing area of smart materials, in particular, composite nanostructured materials. It focuses on the physics and physical chemistry of surfaces, interfaces, thin films and coatings, nanoparticles and other nanostructures, as well as on their new and smart applications. Original approaches in fabrication and applications of nanostructured materials will get special attention. Nanostructured ceramics, alloys, various nanocarbon forms (nanotubes, fullerenes, graphene) and their composites used in sensors (including single molecule sensing) and actuators, artificial metabolism, drug delivery, selective membranes, fuel cells, energy storage, and photovoltaics are just a few examples of new classes of materials and applications that are within the scope of the Digest. It features the results of interdisciplinary research from universities, national labs, and privately owned companies.