Nanotechnology has shown promising potential to promote sustainable agriculture. This article reviews the importance and application of nanoparticles in agriculture as nano fertilizers and nano pesticides, fate of nanoparticles in soil, used for the protection of plant and also act as smart delivery system. Nanoparticles have become a pivotal innovation in agriculture, offering solutions to enhance productivity and sustainability. The emergence of engineered nanomaterials and their actions within the frame of sustainable agriculture have revolutionized world agriculture canvass dramatically by novelty, fast growth and enormity to meet the projection of global food demand. Application of nanotechnology is highly recommended in agricultural production as it increases the quality as well as quantity of yields. Nanotechnology can also be helpful in reducing soil, water and air pollution caused due to excessive use of agrochemicals, thus making agriculture more sustainable. Nanomaterials function as unique carriers of agrochemicals thus facilitate the site-targeted controlled delivery of nutrients with increased crop protection. They offer a wider specific surface area to fertilizers and pesticides. Nanomaterials can enhance nutrient uptake by providing nano-forms of essential nutrients, which are more readily absorbed by plant roots. This leads to improved growth and development. Nanomaterials play an important role regarding the fate, mobility and toxicity of soil pollutants and are essential part of different biotic and abiotic remediation strategies. Efficiency and fate of nanomaterials is strongly dictated by their properties and interactions with soil constituents which is also critically discussed in this review. This review also discusses about the recent developments in the use of nanoparticles in plant growth promotion, types of nanoparticles used their mechanism of action, current applications and their future outcomes.