Cyanobacteria are increasingly being used as biofertilizers due to their numerous benefits for sustainable agriculture and ecological restoration. However, sunlight penetration is impeded and hypoxic and anoxic conditions are created by harmful algal blooms (HABs) in freshwater, which are mostly produced by cyanobacteria. The growing population and the simultaneous draining of energy resources present significant challenges to both the environment and the sustainable management of essential resources like agricultural products. The application of cyanobacteria as biofertilizer is said to be the most promising eco-friendly method. The prokaryotic creature that has evolved to be the most resilient and successful is the cyanobacterium. Cyanobacteria are becoming more and more popular as efficient solar energy conversion microorganisms. This biological mechanism generates oxygen. This review explores the methods of synthesis and applications of cyanobacteria as nanobiofertilizers, with a particular emphasis on their use in agriculture and industry.