The role of fluctuations in both the density functional theory (DFT) and the field theory (FT) of nanosystems is studied. It turns out that although fluctuations are rigorously incorporated into the general formalism of DFT, they are often omitted in the choice of an approximate free energy functional that must be constructed in order to solve the basic integral equation appearing in DFT. Aside from the analytical discussion, it is demonstrated, in connection with a particular system (fluid in a nanopore) that the effects of fluctuation are missing when one of the most common functionals for this system is used. The demonstration involves a comparison of the results of Monte Carlo simulation with the predictions of DFT when this free energy functional is used. The applicability of FT and DFT in the context of the theory of nucleation is also discussed. (C) 2004 American Institute of Physics.