Water supplies have been contaminated worldwide as a result of the fast industrialization and urbanization. Therefore, it is essential and urgent to remediate wastewater in order to mitigate the consequences on the environment and public health. In this regard, scientists have recently become interested in nanomaterials in addition to traditional therapeutic methods. The optical, electrical, chemical, magnetic and tribological, properties of matter can all be greatly tuned via nanostructuring. Because of this, nanostructured materials have been widely used in a wide range of industries and technologies that make our daily life more comfortable and convenient. Nanomaterials exhibit higher surface free energy, which enhances their surface reactivity. Despite this, they have a certain disadvantage such as: (i) They tend to aggregate in fluid systems, leading to high amount of activity loss and pressure drops. (ii) Apart from magnetic nanoparticles, separating them from treated water for reuse is difficult. While there are examples of nanostructured materials improving sustainable technologies like electrolysers, batteries, and water treatment, the full potential of nanoscale materials for sustainability has likely not yet been realised, given the nearly limitless exploration space for nanostructure- property-composition combinations. The wastewater treatment process, in particular, could see significant advancements by utilising the size-dependent properties of nanomaterials. To overcome these challenges associated with their use, extensive research has focused on modifying nanomaterials in various ways. Strategies such as designing nanocomposites with different shapes, functionalising with them with active components, and fabricating nanofibers are just a few methods that have demonstrated great promise and sustainability for water treatment. Examining the most recent developments in each of the many kinds of nanomaterials that are currently widely used for wastewater treatment is crucial. This review provides a thorough analysis of current developments in common nanomaterials used for sustainable wastewater treatment. By addressing the current market challenges, we focus on improving the economic efficiency, sustainability and performance of new-generation nanomaterials through our assessments, ensuring the adoption of these developed technologies.