Nonunion fractures present a significant clinical challenge, often resulting in prolonged disability and increased healthcare costs. Conventional treatments, including autografts and allografts, have limitations such as donor site morbidity, limited availability, and the risk of immune rejection. Biomaterials have emerged as a promising alternative, providing scaffolds that support cell proliferation, vascularization, and bone regeneration. These materials, categorized as metals, polymers, ceramics, and composites, can be tailored to enhance osteoinductive and osteoconductive properties, offering improved outcomes for nonunion fracture treatment. Recent advancements in biomaterials, including biodegradable scaffolds, nanomaterials, and smart materials, have further enhanced the potential for bone regeneration. Additionally, tissue engineering approaches incorporating growth factors and stem cells into biomaterial scaffolds have demonstrated significant improvements in bone healing by creating a biologically active microenvironment. While biomaterials hold great promise, challenges such as immunogenicity, mechanical limitations, and regulatory hurdles must be addressed to fully realize their potential in clinical applications. Future research will focus on developing personalized, multifunctional biomaterials that align with patient-specific needs and further optimize bone healing. These advancements are expected to revolutionize the management of nonunion fractures, providing more effective and less invasive treatment options for patients.