This review paper centers on recent development and progress in natural gas processing and separation using nanoparticles incorporated membranes. Development of mixed matrix membranes (MMMs) is to enhance the performance of polymer membranes for CO2 separation. Overview of natural gas is illustrated. Abridged versions of MMMs development using an ideal polymer with corresponding nanoparticles are presented. The compatibility between nanoparticles with polymers is discussed. Finally, forecast on MMMs for future trends are highlighted.