With the continued demand for ultrahigh density ferroelectric data storage applications, it is becoming increasingly important to scale the dimension of ferroelectrics down to the nanometer-scale region and to thoroughly understand the effects of miniaturization on the materials properties. Upon reduction of the physical dimension of the material, the change in physical properties associated with size reduction becomes extremely difficult to characterize and to understand because of a complicated interplay between structures, surface properties, strain effects from substrates, domain nucleation, and wall motions. In this Review, the recent progress in fabrication and structure-property relations of nanostructured ferroelectric oxides is summarized. Various fabrication approaches are reviewed, with special emphasis on a newly developed stencil-based method for fabricating ferroelectric nanocapacitors, and advantages and limitations of the processes are discussed. Stress-induced evolutions of domain structures upon reduction of the dimension of the material and their implications on the electrical properties are discussed in detail. Distinct domain nucleation, growth, and propagation behaviors in nanometer-scale ferroelectric capacitors are discussed and compared to those of micrometer-scale counterparts. The structural effect of ferroelectric nanocapacitors on the domain switching behavior and cross-talk between neighboring capacitors under external electric field is reviewed.