In the past decade, living radical polymerization (LRP) has revolutionized academic research in the fields of free-radical polymerization and materials design. Sophisticated macromolecular architectures, designed for a variety of applications and end-use properties, can now be synthesized using relatively simple LRP chemistries that do not require stringent oxygen or moisture free environments, subzero reaction temperatures, or highly purified reagents. Publications abound not only in the fundamentals of LRP but also its use in designing tailor-made polymers and polymer hybrid composites. Corporate research organizations have also been actively involved in LRP, with numerous patents being issued annually. Despite the intense research interest, however, comparatively few products have been commercialized, with high process costs being a primary factor. Most commercial free-radical polymerizations are conducted in aqueous dispersions due to significantly lower process costs compared to bulk or solution polymerizations. Successful widespread commercialization of LRP will be advantaged by the development of waterborne processes yielding aqueous dispersions of nanoparticles. Conducting LRP within nanoparticles (i.e., using nanoscale particles as self-contained chemical reactors or "nanoreactors") enables faster reaction times and if harnessed properly will provide better control over the polymer livingness; it also has the potential in the control of the particle mesostructure and microstructure. Recent progress in LRP dispersions is presented with a discussion of outstanding issues and challenges as well as the outlook for adoption of LRP dispersions by industry.