Several nanomaterials with potential uses in several fields, such as electronics, healthcare, energy, and environmental remediation, have been developed owing to the rapid development in the sphere of nanotechnology. Majorly the synthesis of these nano-materials is chemical based. The chemical synthesis of nanomaterials involves creating nanomaterials using sol–gel, chemical precipitation, atomic layer, and chemical vapor deposition. Despite their uses, the harmful environmental impact (toxicity, bioaccumulation, and persistence in the environment) of these chemically synthesized conventional nanomaterials is a growing concern. Therefore, a need for the development of sustainable biodegradable nanomaterials with reduced ecological impact is currently needed. The effective solution to this problem has been provided by the green synthesis of nanomaterials, which are non-toxic, biodegradable, and can be prepared by natural templates. For the synthesis of sustainable nanoparticles microorganisms, plant extracts and agricultural waste have been used effectively. Additionally, through recycling of the nanomaterials, by improving separation, purification, and reuse methods industries can minimize waste, save resources, and reduce environmental impact. By prioritizing these sustainable approaches, nanomaterial synthesis can align with sustainability goals while maintaining their practical qualities and technological advancements.