Animal production is essential to global food systems, providing key products such as meat, milk, and eggs, employs millions of farmers, and facilitates economic development. Monitoring and controlling ambient environmental variables—temperature, humidity, air quality, lighting, and space are crucial to ensure not only the physical and mental health and welfare of livestock but also maintain productivity. Nanomaterials have been used for environmental monitoring as health-promoting agents for animals. They contain sensor arrays and nanomembranes that detect contaminants, toxins or pollutants in feed, water, and environments around animals a proactive approach of detecting potential risks can assist in improving the quality and safety of animal products, and by timely detection and intervention, they could minimize risks to human health. Tested in laboratories, very small materials (nanomaterials) can be incorporated into fabrics and other materials so that they act as filters in them and they serve as monitoring systems for health risks such as proteins, bacteria and viruses and animal welfare, because it allows for rapid and accurate testing and obtaining of necessary results through real-time data to make decisions on whether to respond immediately. This enhances the traceability, and reliability of animal products and increases consumer confidence and aids in the sustainability of the entire industry. While the chapter addresses nanomaterials in environmental monitoring, it is not exhaustive, but highlights several key innovations that are set to make an impact on the optimization of animal welfare, product quality and safety and the long-term sustainability of production animals.